14 August 2010
As per Schedule VI under each head the original cost, and the additions thereto and deductions therefrom during the year, and total depreciation written off or provided up to the end of the year to be stated.
So if depreciation is credit to asset a/c then the same will not satify the requirement of Schedule VI as original cost will be reduced by the depreciation entry and hence the original cost of assets will not be known.
So we make provision for depreciation so that original cost is known to be disclosed in the balance sheet. The net effect of both the entries is same but the same is done for presentation purpose.
14 August 2010
BUT WE ARE MAINTAINING FIXED ASSTES REGISTER FROM THAT WE CAN GET ORIGINAL COST OF ASSETS AND ADDITION THEREON
AND IN BALANCE SHEET WE ARE SHOWING AS PER Schedule VI . BUT IN TALLY WE ARE FOLLWOING THE ABOVE PROCEDURE AND IN MY OPINION THERE IS NO HARM ON THAT. AND OUR AUDITOR IS ALSO GIVING SAME OPINION.
14 August 2010
There is no harm in doing the same in tally.
However it will be only that the accounts in tally will not give the figure of gross block and depreciation seperately in the accounts itself. There will be difference in gross figures only and as i had said earlier also the net effect of both the entries is same but the same is done for presentation purpose.
No problem if this is being followed in books till the time in the final balance sheet the presentation requirement of schedule VI as given below is fulfilled: (a) Gross block
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