Depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2014 Hi..

I am facing below mentioned problems regarding depreciation..
1. 2 yrs back vehicle sold by Company but still providing depreciation. how to rectify this entry?

2. Depreciation: C/f balance showing negative balance.we are following straight line method. i-e for eg.: 20000/- asset value and 20% rate of dep. per yr i-e 4000/-(asset life time is 5 yrs) dep. for 5 yrs is 20000/-. So the balance should be zero.. If any addl. asset only that amt will be carried frwrd.

CA VISHWAKEERTHI.P.S.

CA VISHWAKEERTHI.P.S. (Expert)
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12 September 2014 1. You required to pass entry like below

Cash A/c ------- Dr
To Vehicle a/c
(Being vehicle sold prior years not accounted)

2. Required to set off the negative value with the same % of depreciation assets or better to say new assets purchased.

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