Interested to Buy Any Domain ? << Click Here >> for more details...
what is motive behind create depriciation reserve? how to
pass journal entry in case of depriciation reseve?and how
it shows in the books of co.
- 3 Answers
- 13584 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / anudeep
depreciation can be treated as in two ways one is deducted
from asset and other one is shown as liabibility.
if depreciation is deducted from the concerned asset. then
the balance sheet value asset does not show original cost
the reason why depreciation is treated as depreciation
reserve is to show the asset in the balance sheet as cost
value i mean historical cost we hav to provide depreciation
reserve
any way whether we are deducted from asset or creation of
liability i mean dep reserve the motive of depreciation is
replacement of assets after certain period.
the jounal entry will be like this
depreciation A/c dr
to dep reserve a/c
for transfer to profit and loss account
profit and loss A/c dr
to depreciation account
| Is This Answer Correct ? | 11 Yes | 1 No |
Answer / sanjiv
Motive is to create reserve for replacememt in the event of
loss.
Depreciation Dr to Depreciation Reserve
Depreciation charged to P & L. Reserve is shown as
liability.
| Is This Answer Correct ? | 6 Yes | 0 No |
Answer / raghupathi vengala
It will be we frame for a estimation of future loss. And it
is a assumption. we create it for the future beefit.
| Is This Answer Correct ? | 1 Yes | 1 No |
My firm got Rs.1,00,000/- as consultancy charge after deducting Rs.10,000/- as TDS. Now we have to pay Rs.15,000/- as Service Tax. Net effect we will receive only Rs.75,000/-. How can i account this.
Capital secure should be shown in which side of the balance sheet?
As a Manufacturer we are paying service Tax on Inwards freight and the same amount we are taking as a credit against payment of Excise duty. So,Pls clarify how to pass JV
WHAT IS THE MEANING OF ACCOUNTING
Subsidiary ledger and the benefit of making it, explain?
how would you describe youself
what is indian income & foreign income
Our company is in manufacturing stage and we had paid advance payment to several suppliers for some construction purposes. As manufacturing stage I want to treat it as Capital work in progress.So kindly advise how can we pass the entries for the same.
1 Answers Reflective Aluminium Glass,
What do we mean by Redemption of shares and debentures?
What is the Rate of VAT applicable on Electronic & Electrical goods?
How to calculate Term Loan interest and the double entry for Term Loan ? What difference between hire purchase and term loan ??
You are a senior level manager in a large company: • List and explain the types of accounting information that are important to you and your staff when making decisions. • Explain how your managerial accountant uses technology to develop and communicate this information throughout your large company.
Audit 
