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.
- 3 Answers
- 12276 Views
- I also Faced
- E-Mail Answers
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 |
I am going to take interview of some candidate for the position of Accountant. Therefore, I want to know what type of question I shall be ask to the candidates. Please suggest.
which chart of accounts is used for day to day postings?
simply define shares and debentures
how do made in finalization
what is t code of journal voucher report with amount?
List out some of the accrued expenses and the accounts in which you would record them?
How do I pass entries towards advance paid to program ependiture. ex: Rs.20000 advance paid to Program officer. and he come back with program expenses venue Rs.1000, food expenses Rs.10000 and travel Rs.4000 and accommodation Rs.6000. Kindly give me the answer that how do I pass the entries and how should I adjust advance.
3 Answers Communication for Development and Learning,
When will the cash Book have a Credit Balance?
Company purchase software what is the journal entry or software a/c under which department in tally
when the ABC's personal bank to to his business bank money transferred(paid) then how to pass the entry.
8- What do you understand by accounts receivable and accounts payable and its schedule?
Dear sir Per Day Maximum Cash payment for Limited company in India
Audit 
