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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.

Answer Posted / 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



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