Golden accounting rules application in sinking fund method

2538 views 1 replies

Hi,

I have been a basic finance professional but I am now appearing for CWA and find myself trying to read all journal entries in the light of the 3 golden accounting rules and get confused and can't step ahead. Please help me relate to the bigger concepts so that I don't have to cram up all the JEs.

For example, in the Sinking Fund depreciation method I should be

Debiting the P& L a/c and crediting the Depreciation a/c (i suppose i am taking out the money from the P & L a/c and allocating it to the depr. a/c), in that case should i not be debiting the Depr. a/c (Dr. the receiver) and crediting the P& L a/c (Cr. the giver)

Again, in the same method, i will be transferring the interest earned on investment to the Sinking fund a/c so I should be:

Debiting the Sinking fund a/c (Dr. the receiver) however, the text books actually show it differently:

Interest on Investment a/c  Dr.

       To sinking fund a/c

Please help me understand these entries, should i really be enforcing the 3 golden rules here??

Appreciate a detailed reply

I am also enclosing the complete workout of Sinking fund depreciation method.

Thanks,

seeker

 

 

 

 

 


Attached File : 829807 982104 depreciation fund method or sinking fund method of depreciation.doc downloaded: 239 times
Replies (1)

Being a student i can reply only this far.. check the attached file.. everything matches accordingly with the books...


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details