02 September 2009
Suppose on April 1, 2008 you have purchasd an asset for Rs. 1,00,000. The applicable dep. rate is 25% SLM. So during the year 2008-09, the depreciation charge would be Rs. 25,000. On 31st March 2009 the following entries would be passed:-
Depreciaition A/c.....Dr. 25,000 To Accumulated Dep. A/c
The depreciation expenses would be transferred to P/L Account.
on 31 March 2009, the Balance sheet would be shown as below:-
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