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Depreciation

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36 Points Posted on 01 October 2019
I am working in a pharmaceutical wholesale shop as accountant.Can i charge depreciation on the assets here on whichever method convenient to me?? is there any rule saying that i should calculate depreciation in a particular method only???
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On 01 October 2019 at 16:45 Report
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General Manager - Finance
1040 Points Posted on 01 October 2019

Yes, you can choose any method but depreciation rate will be also accordingly.

8 Reply
On 01 October 2019 at 17:30
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"Do the Right Thing...!!!"
128147 Points Posted on 01 October 2019
Is Your Pharmacy is Ltd or Pvt Ltd or others...?
463 Reply
On 01 October 2019 at 22:13
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36 Points Posted on 01 October 2019
No,it's a pvt wholesale firm..sole proprietorship firm.
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On 01 October 2019 at 22:21
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128147 Points Posted on 01 October 2019
Then You can depreciate Your assets as per income tax rates...
463 Reply
On 01 October 2019 at 22:23
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36 Points Posted on 01 October 2019
Ok sir..how to charge it??means whether i need to put entries every months(total dep/12)or a single entry annually??
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On 01 October 2019 at 22:27
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128147 Points Posted on 01 October 2019
You can provide single entry on annually...
463 Reply
On 01 October 2019 at 22:31
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36 Points Posted on 01 October 2019
Ok sir..thank u for the information
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On 01 October 2019 at 22:34
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"Do the Right Thing...!!!"
128147 Points Posted on 01 October 2019
You are most welcome dear
463 Reply
On 01 October 2019 at 22:37
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36 Points Posted on 02 October 2019
1)Can i put journal entries for depreciation every month??is it compulsory to put depreciation journal entries at the end of the financial year only??
2)In my firm accumulated depreciation is maintained.so please help me with journal entries on depreciation in this case
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On 02 October 2019 at 13:42
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128147 Points Posted on 02 October 2019
1. Yes... You can.

2. Dr. Depreciation A/c
Cr. Fixed Asset A/c
463 Reply
On 02 October 2019 at 14:44
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36 Points Posted on 02 October 2019
Sir then what about accumulated depreciation???
=Dr. Depreciation A/c
Cr.Accumulated Depreciation A/c

=Dr.Accumulated dep A/c
Cr Fixed Asset A/c

Is this right sir???
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On 02 October 2019 at 14:50
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128147 Points Posted on 02 October 2019
This is okay


=Dr. Depreciation A/c
Cr.Accumulated Depreciation A/c


for example :
If asset cost - 100
depreciation - 10 ( x 3 years) = 30

then accumulated dep value 30.

After that calculate FA value 70...

Both account will be maintain end of the years...
463 Reply
On 02 October 2019 at 14:59
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36 Points Posted on 02 October 2019
Ok sir..thank u very much
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On 02 October 2019 at 15:02
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"Do the Right Thing...!!!"
128147 Points Posted on 02 October 2019
You are most welcome dear
463 Reply
On 02 October 2019 at 15:03


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