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.
- 3 Answers
- 12283 Views
- I also Faced
- E-Mail Answers
Answer Posted / anudeep
depreciation can be treated as in two ways one is deducted
from asset and other one is shown as liabibility.
if depreciation is deducted from the concerned asset. then
the balance sheet value asset does not show original cost
the reason why depreciation is treated as depreciation
reserve is to show the asset in the balance sheet as cost
value i mean historical cost we hav to provide depreciation
reserve
any way whether we are deducted from asset or creation of
liability i mean dep reserve the motive of depreciation is
replacement of assets after certain period.
the jounal entry will be like this
depreciation A/c dr
to dep reserve a/c
for transfer to profit and loss account
profit and loss A/c dr
to depreciation account
| Is This Answer Correct ? | 11 Yes | 1 No |
Post New Answer View All Answers
what is the relationship between bookkeeping and accounting?
how many times we can deposit the old currency in one a/c in the bank
WHAT IS CORE ACCOUNTING, GROUP CONSOLIDATION ? CONSOLIDATED ENTRY. COULD YOU GIVE ME AN EXAMPLE
we are a trading company providing devices and some times after sales service. when any defect came we just replace the hardware from another defective device and getting the payment from the customer. how can we account that? is there any tax implications for this?
how to calculate accrued interest on fdr?how to see from bank statement????basic procedure plz advice..
sir what is the depreciation and how to calculate depreciation as per company books, i need as per IT ACT, AND Companies Act give me clarification with example
what is the Differed Tax Liability & How it is calculate ?
What is an adjusting journal entry?
What Is Responsibility Accounting?
What is meant by calendar maintenance?
what is the manual procedure for accounting
in trading credit why does goods sent on consignment come?
record the following transaction in the various books of accounts F Black loan us $5000 paid by cheque.
What is service tax & excise?
what is use of cost center category in tally ? why & when use this ? what is benfit ?
