Nature of account

what is the nature of accounts for provision for depreciation and provision for doubtful debts??

are they credited or debited? explain....

Replies (17)

provision for Depreciation is a nominal a/c.........while provision for doubtful debts is a personal a/c

........... these accounts are credited ven opened..

Dear pankaj, only depreciation is nominal account and provision for depreciation is real account ,, because it will reduce from assets ,,
I m relly confused....tell me which one is right please???
provision for depreciation is real a/c

provision for depreciation & prov. for doubtful debts are real a/cs. they reduce the assets.

depreciation a/c is a nominal a/c. its closed at the end of year by transferrin to P & L a/c.

Depreciation is nominal a/c & provision Depreciation & doubtful debts are real a/cs.

 

Both these are for reduction of asset value and both are provisions for expense. Both should be in the same nature of accounts. It is nominal a/c.

Hi friends , remember one thing , provision for depreciation reduces from fixed asset so it is real account and provision for doubtful account reduces from sundry debtors so it is personal account ... Fixed asset is real and debtors is personal , provision created for what purpose will determine its nature also ...
Hi friends , remember one thing , provision for depreciation reduces from fixed asset so it is real account and provision for doubtful account reduces from sundry debtors so it is personal account ... Fixed asset is real and debtors is personal , provision created for what purpose will determine its nature also ...
Please tell the correct answer.

Provision for Depreciation Account is a real account as it is maintained against the fall in the value of a fixed asset which is in itself is a real account and it is treated as a liability for the business.

Provision for depreciation is valuation account or special account

It is a credit balance

But not a nominal account or liability account

But it is reduced from fixed asset in the balance sheet as per account standard 10

 

Provision for depreciation is valuation account or special account

It is a credit balance

But not a nominal account or liability account

But it is reduced from fixed asset in the balance sheet as per account standard 10

 

Provision for depreciation is valuation account or special account

It is a credit balance

But not a nominal account or liability account

But it is reduced from fixed asset in the balance sheet as per account standard 10

 

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