In the2001-02 year some accountant has wrongly shown Security deposit in the leasehold premises in the year 2001-02 and has claim depreciation on straight line method and now we want to move security deposit from leasehold.what are the effects and the entries to be passed.please guide me.
3 Replies
Giridhar S Karandikar
(Team Lead)
(7553 Points)
Replied 19 December 2011
Regroup the Security Deposit under the head Non-Current Assets
After that pass the following entry:
Security Deposit Dr
To Depreciation(leasehold premised) Cr
ASHISH JAIN
(STUDENT)
(240 Points)
Replied 30 December 2011
The entry will be:
Security deposit .... Dr. (Amt of Security Deposit)
To Leasehold Premises (Proportionate Balance of Sec Deposit left after Depreciation)
To Prior Period Adjustments (Remaining Amount (to be adjusted in P/L at year end as per AS-5))
Further u'll have to reclassify it as per Revised Sch VI under head Non Current Assets.
Thanks!!
Rama chary Rachakonda
(Master in Accounts & high court Advocate)
(8497 Points)
Replied 31 December 2011
both Mr.Giridhar and Mr.Ashish jain views are correct.
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