Depreciation & accumulated depreciation
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
12 May 2013
Dear sir,i need clarification regarding depreciation and accumulated depreciation.accumulated depreciation is a contra asset.but i dont understand contra asset.pls tell me about depreciation and accumulated depreciation with examples include journal entries.regards,vijay.
12 May 2013
Entry without Acc. Dep.
Dr. Depreciation
Cr. Asset (Asset Group)
Entry with Acc. Dep.
Dr. Depreciation
Cr. Acc. Dep. (Liability Group)
You can see that asset is not reduced rather a liability is raised on opposite side. That's why some people call it as contra asset.
Accumulated Dep. is shown as reduction to Historical cost of asset in Balance Sheet thereby resulting same net effect.
Dr. Depreciation
Cr. Asset (Asset Group)
Entry with Acc. Dep.
Dr. Depreciation
Cr. Acc. Dep. (Liability Group)
You can see that asset is not reduced rather a liability is raised on opposite side. That's why some people call it as contra asset.
Accumulated Dep. is shown as reduction to Historical cost of asset in Balance Sheet thereby resulting same net effect.
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?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- Import license renewal
- 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
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
