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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?
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Answer / vijaya kumar
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.
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