01 July 2014
Accumulated depreciation is nothing but the depreciation for the various years cumulatively is known as 'Accumulated Depreciation. For example. Cost of the asset=Rs.100000 Dep.for the 1st year=Rs.1000 Dep.for the 2nd year =Rs.1000 Then accumulated depreciation in 2nd year is=1000+1000=2000 WDV of the asset in 2nd year=10000-2000=8000
01 July 2014
accumulated depreciation is a account of reserve, when depreciation is charged periodically following entry is being made
Depreciation acc dr (PnL) To accumulated depreciation (B/S) since accumulate dep account is of B/S, at the end of each period it will show till date balance.
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