what is entry for depreciation?
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Answer / sridharan.v
Depreciation is a nominal a/c.i.e dr all expenses &losses.
cr all incomes & gains.So while Depreciating dr
depreciation A/c.All assets are Real acount. i.e debit what
comes in & credit what goes out. so When asett comes in we
will debit asset A/c & normally asset a/c will have Dr
balance.To decrease the value of the asset we have to Cr
asset A/c. Therefore The entry for depreciation is
Depreciation A/c Dr XXX
To Fixed Asset A/c XXX
| Is This Answer Correct ? | 255 Yes | 23 No |
Answer / rajesh
below is the entry for depreciation
Dr Depreciation
Cr Fixed Asset (Eg.Computer or Vehicle ) XXX
| Is This Answer Correct ? | 208 Yes | 36 No |
Answer / mahesh babu
Depreciation A/c Dr
to Fixed Asset A/c or Asset A/c
(Being depreciation charged on asset)
| Is This Answer Correct ? | 145 Yes | 25 No |
Answer / pardeep kumar
Depriciation A/C Dr.
To Fixed Assets A/c
(being dep. charged on fixed assets)
| Is This Answer Correct ? | 116 Yes | 17 No |
Adjusting entry
Depreciation A/c Dr
To asset A/c
(dep provided)
Transfer entry
profit and loss A/c Dr
To depreciation A/c
(dep transferred to
profit and loss account)
| Is This Answer Correct ? | 92 Yes | 16 No |
Answer / mohammedghousemohiuddin
Depreciation a/c Dr.
To Accumulated Depreciation on concerned fixed asset
(being the depreciation calculated for the year....)
| Is This Answer Correct ? | 84 Yes | 15 No |
Depriciation A/c
To Fixed assets A/c
Being depriciation comes in a nominal account rule and
rule of nominal a/c is dr all expenses and losses and cr
all income and gains
Asset comes in real a/c and the rule for real account is dr
what comes in and cr what goes out. thats after
depreciating the assets its value becomes to zero in the
end thats why the above entry.
| Is This Answer Correct ? | 48 Yes | 9 No |
Answer / ali asad
depreciation is not an actual expense paid in cash, but it
is assumed by owner to estimate the useful life of an
asset.we determine the life span of an asset then we apply
a certain rate of depriciation upon the asset so that we
can purchase a new asset after the finishing of the useful
life of an asset.
As we use an asset it certainly loose its efficiency.change
in efficiency is its depreciation.due to resuce in its
efficienc the asset reduce its value,however we are not
paying it in actual so there is no ivolvement of bank or
cash at all.
correct entry is:
Depriciation A/c
to Accumulated Dep.A/c
depreciation is an expense and dbit to profit & loss and
Acc.dep. is transfer to reserves on credit side of
balancesheet so Assets are on debit side and the
Acc.depriciation automatically adjust the balance of assets
on debit side of balance sheet.
| Is This Answer Correct ? | 17 Yes | 2 No |
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