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.
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 |
any body pls. tell me, if we purchase with credit card how to take into tally ( and) comes under which group for credit card purchases
what is journal entry ? please describe in detail.
What is Use of Reversing Journal(F10)& Optional Voucher(Ctrl+L) in Tally erp9?
how will decide that vender payment is ok without reco
What does the abbreviation m mean in accounting?
What is the difference between Finance and Accounts?
What are the current liabilities & current Assets
How can i learn shortly Tally from computer coz, i want to take a company Balance Sheet
calculation of coast of goods sold
Role-specific management accountant job interview questions:
Following information is given to you: Year - Sales - Cost 2009 - 200000 - 205000 2010 - 300000 - 310000 Calculate: 1. P/V Ratio 2. BEP 3. The amount of profit or loss were sales are Rs. 325000 4. The amount of sales required to earn a profit of Rs. 5000 5. Margin of Safety for the year 2010
Types of vouchers with explaination