Why depreciation is charged in P&L Account?
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Answer / vinotha.v
YEAR TO YEAR CHANGE THE FIXED ASSETS (DECREASE THE VALUE).
SO DEPRECIATION IS CHARGED IN PROFIT & LOSS ACCOUNT
| Is This Answer Correct ? | 6 Yes | 9 No |
Answer / sonali
Depreciation is reduction in the price of fixed assets due
to wear and tear over a passage of time. It shud be shown
in P&L A/C bcoz while disposing off the asset u will get
lesser price than for what u had purchsed it so its one
kind of loss (in rupees). As we use double entry accounting
system we have give two effects of the transaction so one
effect is shown in P&L debit side and one is less from
fixed assets.
| Is This Answer Correct ? | 5 Yes | 10 No |
Answer / jagdish sherla
Depreciation is charged in P&L Account to decrease the
value of Fixed Asset as per rules of Income Tax and get the
net profit after depreciation.
| Is This Answer Correct ? | 7 Yes | 16 No |
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