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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?
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Answer Posted / 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.
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