Answer / sriraman g

Yes, it will affect both P&L A.c & Balance sheet and the
amount will be same in both sheet

Answer / manas jose

its effect will be shown on the debit side of p&l a/c
and the particular asset on which depriciation is charged
will be reduced by the amount of depriciation and shown on
the asset side of balance sheet.yes

Answer / arun

dear manju this is the simple that in the next year balance
sheet Rs.4000/- will be effected in the both sheet.

Answer / manoj thakur

Dear Sriraman G! I just want to confirm other thing also
that As per your ans, If dep amount is Rs 5000/- than same
will be affect in p&l a/c & b.s. also. but if in the next
year the dep value is Rs. 4000/- than what amount will
affect in p&l a/c and what amount will affect in b.s.?
kindly confirm.

Answer / punit jain

as per requirement of schedule VI of the companeis act
assets are to be shown at their gross value in the balance
sheet less accumulated depreciation. so first year only Rs.
5000 will be deducted from gross value of assets & Rs. 5000
will be charged to profit & loss account. in next year
current year depreciation of Rs. 4000 will be charged to
p/l a/c & total i.e accumulated depreciation of Rs. 9000
(4000+5000) will be deducted from gross value of assets
i.e.Rs. 100000.00 hope u 'll understand.

Answer / ankita(business.ankita@gmail.c

yes dep. ...will take place on p/l and B/S.... suppose..a
labnd of rs 100000..DEP IS 10 PERCENT....THEN AMOUNT 10000
WILL BE IN PROFIT AND LOSS....

AND IN BALNC SHEET...IT WILL BE DEDUCTED IN 100000...SO
MEANS 90000 WILL BE SHOWN ON b/s on asset side.....

AMT OF DEP WILL BE SAME 10000...IN BOTH PLACES....

Answer / r.purushothaman.

1) depreciation is effect the amount of depreciation in
company final account p&l a/c and b/s a/c.

2) no, p&l amount of depreciation is previous year and
current year add and put a p&l a/c debit side and b/s
assets side current year depreciation only dedcted from
particular assest. so, total amount of depreciation will
defer p&l a/c and balance sheet.

Answer / atul

Miss ankita first of all land never be depreciated it always appreciated.
Now comes to the question there are two main methods one is SLM and other is WDV. According to SLM dep. is charged as a fixed amt. per year where as in WDV dep. is charged on the reducing balance. Suppose current year dep.is Rs.2000 so it will be reflect in current year's p&l a/c and will be reduced from the asset in balance sheet now again in IInd year dep.is Rs.1000 will reflect in current year's p&l a/c and will be deducted from asset in balance sheet and the asset would be shown as net means after deducting depreciation.
As per CA ans (5000+4000=9000) will be reduced in 2nd year so it means company is maintaining accumulated depreciation a/c that's why the asset is shown on historical value in the balance sheet. If u will reduce this accumulated dep. from the historical value u will get the net value of the asset. Similarly as u reduce dep. yearly from the value of the asset or show ur asset in B/s as net every year.
Hope now u will understand the situation clearly.

Answer / shashi kumar

Yes ..it is affected to both company p& loss a/c as well as balance sheet also ..frst it effected to p& l a/c in that a/c depriciation wl come in debit the deprisiation amount calucalted on based on respective asset value n given depriciation percentage....after the p & loss a/c it also effected to balance sheet ...in balance sheet asset side under fixed assets the depriciation can be deduct from their respective asset value soo the depriciation amount effect to both

Answer / manoj thakur

Dear Arun, thanks for your ans. i agree with u. But in an
interview faced by me the ans a C.A. was that Rs of 5000/-
will be reduced first year & Rs. 9000/- (5000+4000)will be
reduced in 2nd year. but in the balance sheet show full
amount of particular asset in every year.
As per his ans, if asset value is Rs. 1 lac so that in the
balance sheet show the same value in every year, his mean
was Rs. 1lac. I was very confused.

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