Depreciation Vs. Accumulated Depreciation/Provision for depreciation

This query is : Resolved 

06 June 2022 what are difference between Depreciation Vs, Accumulated Depreciation. Tax treatment of Depreciation and Accumulated Depreciation in Books of accounts and whether Accumulated depreciation is annually charged to profit and loss account.


06 June 2022 Depreciation is a revenue (non cash) expenditure. While passing depreciation entry periodically, depreciation is debited and depreciation reserve (accumulated depreciation) is credited. Depreciation is transferred to Profit and Loss account at the end of the year. Accumulated depreciation is reduced from fixed assets while preparing the balance sheet.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries