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Depreciation in company

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Surya S

73 Points Posted on 28 August 2021

in company profit and loss account which depreciation amount is show current year depreciation expense or accumulated depreciation?

and in balance sheet of company asset value how calculate?

Replies (4)

Quick Summary

This discussion clarifies how depreciation is presented in company accounts. The Profit & Loss account shows the current year's depreciation expense. The Balance Sheet, however, reflects the asset's carrying amount less accumulated depreciation and any impairment. Accumulated depreciation from previous years is also detailed on the Balance Sheet, reducing the asset's net book value.

yasaswi gomes

My grammar is 💯 good I

7306 Points Posted on 28 August 2021

Current year in profit and loss and balance sheet. Accumulated in balance sheet.

Bs asset value= asset carrying amount-accumulated depreciation-impairment.

prasad Nilugal

3924 Points Posted on 28 August 2021

In profit and loss account , we show current year depreciation , if any accumulated depreciation of previous years will be shown in Liability side in balance sheet .
Also we reduce the value of Asset by charging depreciation .

entry will be
Depreciation A/c Dr
To Asset A,/c Cr
( Depreciation charged )