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.
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.
CAclubindia
