same or different

Hi Gaurav,

While recording depreciation @ provision for dep a/c may or may not be maintained. If the a/c is maintained then the assets appear at their original cost since the dep is credited to prov a/c instead of asset a/c.

Entry: Depreciation A/c               Dr.

                To Provision for depreciationa/c

On the other hand, The accumulated depreciation, is the actual depreciation, as measured by the actual loss in value of an item and represents the total, or accumulated loss of value of an item or a group of items, in that fiscal period.....

both are same...

HEY FROM  MY POINT OF VIW THEY BOTH R DIFFERENT

FIRSTLY ACCUMULATED DP WORD IS USED IN INCOME TAX AS IT IS DEP WHICH COULD NOT BE ADJUSTED BECOZ OF LOSSES.

SECONDLY PROVISION FOR DEP IS DONE IN ACCOUNTS WHICH SHOWS DEP TILL DATE PROVIDED ON THE ASSETS

I agree with Mr Krishna kumar

accumulated depreciation and provision for depreciation both are same.....

poonum is correct.. provission for dep is charge against profit. i e we can claim depreciation as deduction from profit. but when we cant claim it ( during loss or insufficient profit ) then it get accounmulated and eligible for cliam as deduction from future year profits.

so far i know when depreciation can not be claimed as deduction due to loss or insufficient profit it is accumulated and called "unabsorbed depreciation" and carried forward to the next year.....the provision for depreciation and accumulated depreciation are same......

accumulated depreciation means total of the depreciation till date and provision for depreciation means depriciation for current year.

Accumulated Depn and Provision for depn are different:

Accumulated depn account is maintained to show Original cost of fixed cost at historical cost value rather than adjusting the depreciation and showing at net book value.

Provision by its nature is a charge on profit. When the exact value of depreciation cannot be ascertained for eg. CWIP is going on then there can be provision for depreciation on the same before the asset is capitalized. In such cases this account is maintained.

Current year provision for depn will be added to Accumulated depn.

This is accounting perspective.

In taxation this will be different.

hey ya. i was wrong. accoumulated dep means total of dep till date. wat i told in previous post is unabsorbed dep...

Actually both Provision for Depreciation and Accumulated depreciation are one and the same thing. 

Entry for charging depreciation while maintaing Provision for Depreciation A/c is Depreciation A/c Dr. to Provision for Depreciation A/c. Later Depreciation A/c is debitedd to P/L A/c and Provision for depreciation A/c is shown as a Deduction from the historical cost of the Asset.  Provision for Depreciation A/c keeps on accumulating the depreciation charged every year, hence this account is also called Accumulated Depreciation A/c. 

Thank u sir for clarifying. Yes both are same.

@ Gaurav...

hope u got the answer bro...

Wrong and base less reply..