Follow Our FB Page << CircleMedia.in >> for Daily Laughter. We Post Funny, Viral, Comedy Videos, Memes, Vines...


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



what is motive behind create depriciation reserve? how to pass journal entry in case of depriciati..

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

what is motive behind create depriciation reserve? how to pass journal entry in case of depriciati..

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

what is motive behind create depriciation reserve? how to pass journal entry in case of depriciati..

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

Post New Answer



More Accounting General Interview Questions

My gross salary is 12,000/-P.M & due to less working days gross salary becomes 8,000/-P.M will ESI come as my gross is less than 10,000/-P.M

2 Answers  


what is tds rates for company / indivisuals?

1 Answers  


what question ask in aptara for technical test questions?

2 Answers   Aptara,


Hi Everybody, Can anybody tell me the journal entry for below question, Charged interest on Capital Rs.1,500.00 Thanks,

15 Answers  


Explain purchase day book.

0 Answers  






please give a journal entry for purchase order

1 Answers   Cap Gemini, IBM,


what is journal

17 Answers   Genpact,


What is the entry to be made when any service tax is paid for any vehicle hired or any service used when tax is included in that bill

1 Answers  


what is contra entry . plz explain with example.

6 Answers   KOMA,


what is the difference between expenses(indirect) and indirect expenses?

4 Answers  


WHAT IS DIFFERNCE BETWEEN CREDIT & DEBIT

4 Answers  


Sir I am taking the Salary Rs 18000/- the shown to me in Pay Roll Basis but not deduct any PF. Plz told me tha is the company liable to deduct my PF?

5 Answers  






Categories