Depreciation
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 August 2011
why is depreciation recorded in p and l account if it is used in production
29 August 2011
All expenses and income related to production will charge to P&L a/c.
Assets is also use in producation so its depreciation is also recorded as expenses.
Assets is also use in producation so its depreciation is also recorded as expenses.
29 August 2011
I will agree with experts and your view is even correct.
As Depreciation on plant & machinery used in the manufacture should be charged to Trading Account only and only Depreciation Expenses related to office and its related assets should be charged to Profit & Loss account ,
But in order to avoid such bifurcation Institute along with the MCA issue a clarification for charging all the depreciation together at a single streak at Profit & Loss account.
As Depreciation on plant & machinery used in the manufacture should be charged to Trading Account only and only Depreciation Expenses related to office and its related assets should be charged to Profit & Loss account ,
But in order to avoid such bifurcation Institute along with the MCA issue a clarification for charging all the depreciation together at a single streak at Profit & Loss account.
30 August 2011
The experts are right and they have given you the proper answer. I agree with them
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- TDS U/S. 194NF
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- Inventory of finished goods
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
