Depreciation Reserve
This query is : Resolved
29 January 2011
i have a doubt. Deprecition reserve in tally what is the accounting head. is fixed asset? is it right?
year end journal entry would be
Deprecition Dr 1000
To Depreciation Reserve 1000
Deprecition reserve reduce the value of assets?
year end journal entry would be
Deprecition Dr 1000
To Depreciation Reserve 1000
Deprecition reserve reduce the value of assets?
29 January 2011
This is based on the method of accounting which you are following, some companies keep reserve system and some can be credited to fixed asset directly, so both the effect are same
while creating Depreciation reserve it need to be grouped as Fixed assets, the we can see the Fixed asset net effect in Balance sheet
Following Depreciation reserve method is good & recommened also
while creating Depreciation reserve it need to be grouped as Fixed assets, the we can see the Fixed asset net effect in Balance sheet
Following Depreciation reserve method is good & recommened also
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29 January 2011
If the company is using Depreciation reserve. I think so the depreciation Reserve will be going to the liability side of the balance sheet.
29 January 2011
it is nature of liability only but , it need to be gruoped under fixed asset for reducing the Fixed asset value in the balance sheet
29 January 2011
one of my friend said to me Depreciation reserve Under the heading of Reserve and surplus in Tally. It right or fixed assets group.
29 January 2011
Depreciation reserve need to be in Fixed assets only, that the corect and fair presentation
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30 January 2011
Agreed with Mr Kkrishnan. Dep reserve or Accumulated Dep is a liability and at the time of creation of financial statements will be reduced from the fixed assets for presentation.
You will any way show a separate schedule showing the changes during the year.
You will any way show a separate schedule showing the changes during the year.
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