what is the nature of accounts for provision for depreciation and provision for doubtful debts??
are they credited or debited? explain....
what is the nature of accounts for provision for depreciation and provision for doubtful debts??
are they credited or debited? explain....
provision for Depreciation is a nominal a/c.........while provision for doubtful debts is a personal a/c
........... these accounts are credited ven opened..
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.
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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