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 Audit interview questions  Audit Interview Questions
 CompanyAffairs CS interview questions  CompanyAffairs CS Interview Questions
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 Accounting AllOther interview questions  Accounting AllOther Interview Questions
Question
where will be effect the amount of depreciation in company
final account? If it will effect in P&L A/c & Balance Sheet
also than will amount be same in both sheet?
 Question Submitted By :: Manoj Thakur
I also faced this Question!!     Rank Answer Posted By  
 
  Re: where will be effect the amount of depreciation in company final account? If it will effect in P&L A/c & Balance Sheet also than will amount be same in both sheet?
Answer
# 1
Depreciation is a notional expenses it is directly affected 
two areas viz, one is the respective asset account, another 
is profit and loss account where tax payment is reduced 
since depreciation is a deductable expense in tax law. Not 
the amounts indeed change because tax effect on the 
depreciation portion is different.
 
Is This Answer Correct ?    1 Yes 0 No
Vijaya Kumar
 

 
 
 
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