Fixed Assets.

good evening

I am having one query that by mistake depreciation for the last year was excess shown by 186959 in balance sheet which is signed.

as a result profit and loss account is showing excess of 186959 in books of accounts.

can anyone please let me know that but should I do in current year or previous year so that my profit and loss account figure can be matched.

without disturbing balance sheet figures.

thank you.
Replies (9)
Quick Summary
A user mistakenly overstated depreciation on fixed assets by £186,959 last year, impacting the profit and loss account. They are seeking advice on how to rectify this error in the current year without altering previous financial statements. Suggestions include adjusting current year depreciation or potentially preparing accumulated depreciation figures to resolve the discrepancy.

Adjust the amount in current year depreciation.

I also think it better to adjust in current year instead of disturbing the books of account for previous year.

If there is excesz in balance sheet, its nothing but accumulated deprection + current year depreciation.

 

In the pl only current year depreciation is shown. You only depreciation? Do you claim depreciation in arrears? Its better to correct it from previous year to reduce complexities

On a se ond thought i better prepare the accumulated depreciation. I guess your current depreciation is correct because we cant present the asset at nbv. Give me some time. No one here is helpful now a days. 

Pls post the rough working to facilitate correct and accurate position.

I think this is over provisioning of depreciation which will show up a  credit balance on the trial balance.

Take the opening balance of asset say 100

Last years over balance say 10

and then current years depreciation will be 100-10*10 percent depreciation rate

There is no th8nk ots action.

You didnt get it?

Opening asset balance+extra dep-(opening asset balance+extra depreciation charged* current year depreciation rate)

Ok excess in books of accounts...

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