how do you charge Depreciation in p&l,(what basis and value?)

how do you charge Depreciation in p&l,(what basis and
value?)

Question Posted / mohanyochinaonline

2 Answers
6774 Views
I also Faced
E-Mail Answers

Answers were Sorted based on User's Feedback

how do you charge Depreciation in p&l,(what basis and value?) ..

Answer / sarata kumar swain(godhan,kend

DEPRICIATION IS THE REDUCING VALUE OF ASSET IN A FINACIAL
YEAR SO FIRSTLY CALCULATED THE AMOUNT OF DEPRICIATION IN
FIXED OR DIMINISHING BALANCE METHORD FROM THE W.D.V OF
ASSET AND THE AMOUNT OF DEPRICIATION AMOUNT ISTO BE TAKEN
IN THE DEBIT SIDE OF P/L ACCOUNT AND THE SAME AMOUNT IS TO
BE DEDUCTED FROM THE OPENING W.D.V AND THAT THE CALCUTED
AMOUNT IS THE CLOSSING W.D.V OF ASSET AND FINALLY THE
CLOSSING W.D.V TAKEN IN TO BALANCE SHEET ASSET SIDE AS THE
CURRENT VALUE OF ASSET FOR THE PURPOSE OF FINALISING OF
ACCOUNT AND THE DEPRICIATION OF NEXT YEAR IS TO BE
CALCULATED FROM THE CLOSSING W.D.V OF ASSET.

Is This Answer Correct ?

7 Yes

0 No

how do you charge Depreciation in p&l,(what basis and value?) ..

Answer / chaitanya

The written down value of plant or a machinery is known as
depreciation.The depreciation will be accounted into books
by taking in on debit side of profit and loss account.The
same amount of depreciation will also be deducted from the
astet a/c in balance sheet.The big firms will also be
maintaining seperate depreciation heads for its future
mobilisation of money from its reserves.

Is This Answer Correct ?

2 Yes

0 No

Post New Answer

More Accounting AllOther Interview Questions

what is the meaning of (PDD’s, DOD’s, CFR’s,) based on understanding of the business process

0 Answers

what is C foam and where use

3 Answers

What is pre-paid amount? What is post-paid amount? Explain received in advance? Explain paid in advance?

0 Answers

Expand C P F