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
6690 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 Formula For Return on Working Capital

0 Answers SVI,

what will be entry for bank charges in cash book

4 Answers ABC,

A company produces and sells 12500 units of Commodity X at Rs 50 each. The variable cost of the production is 20 % of selling price. Fixed cost being Rs 100000 per annum. Calculate the PV ratio and BEP if.  The selling price is reduced by 5 %.  Fixed cost is increased by 2 lacs

0 Answers

How can Goods Received Note (GRN) be cancelled?

1 Answers

What is TDS?

4 Answers

Which Exchange determine Foreign ?

0 Answers

received interest on delay of payment of against of receipts accounting books will treat indirect income or direct income

1 Answers

WHAT IS B.E.P. CHART

0 Answers ITC Infotech,

discounted our own note 60-18% for 4,500 note. the proceeds will be directly credited to bank account. what is the entry of this?