where will be effect the amount of depreciation in company
final account? If it will effect in P&L A/c & Balance Sheet
also than will amount be same in both sheet?
- 11 Answers
- 16496 Views
- Global Automation, IBM, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / sriraman g
Yes, it will affect both P&L A.c & Balance sheet and the
amount will be same in both sheet
| Is This Answer Correct ? | 22 Yes | 2 No |
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
| Is This Answer Correct ? | 11 Yes | 1 No |
Answer / arun
dear manju this is the simple that in the next year balance
sheet Rs.4000/- will be effected in the both sheet.
| Is This Answer Correct ? | 9 Yes | 1 No |
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.
| Is This Answer Correct ? | 7 Yes | 1 No |
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.
| Is This Answer Correct ? | 5 Yes | 1 No |
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....
| Is This Answer Correct ? | 4 Yes | 0 No |
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.
| Is This Answer Correct ? | 4 Yes | 2 No |
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.
| Is This Answer Correct ? | 0 Yes | 0 No |
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
| Is This Answer Correct ? | 0 Yes | 0 No |
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.
| Is This Answer Correct ? | 1 Yes | 4 No |
what is meant by TDS
if i want a c form from sale tax department and i have cst number. what would it cost to me.
How can i treat the tds in the Books of Deeductee. Example suppose my company recives an amount on Job work charges by giving tds to a deductor company. Then will i creat it under tax and liability ledger or other.
Treatment of Government grant and its utilization in P
Occasionally it is said that issuing convertible bonds is better than issuing stock when the firms shares are undervalued. Suppose that the financial manager of Decent Furniture Company does in fact have inside information indicating that the decent stock price is too low. Decent furniture earnings will in fact be higher than investor’s expectations. Suppose further that the inside information cannot be released without giving away a valuable competitive secret. Clearly, selling shares at the present low price would harm Decent’s existing shareholders. Will they also lose if convertible bonds are issued? If they do lose in this case, is the loss more or less than it would be if common stock is issued? Now suppose that investors forecast earnings accurately, but still under value the stock because they overestimate Decent’s actual business risk. Does this change your answer to the questions posed in the preceding paragraph? Explain.
what is contra entries defination and meaning and some example
how to start a personal finance company that is not require RBI registration.
What is Holding co.
Does any one attented HSBC audit compliance test? Please let me know asap. suraj
what are the processes for register's of ESIC any one suugest me please ?
how to prepare a MIS report
1 Answers Sai Softech, UCA, VT Vacuum Technologies,
Can anybody tell when sbh dispatches appointment letters for Clerical for people completed medical and scrutiny of documents on 15/08/09?
0 Answers State Bank of Hyderabad SBH,
Audit 
