Journal Entry

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Prasanna Bhat (Querist)
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03 September 2009 Sir,

What is the journal entry for writing of fixed asset which has suffered depreciation. pls reply ASAP

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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03 September 2009 Fix Asset Cr
Dep Dr

and

P&L Dr
Dep Cr

Prasanna Bhat

Prasanna Bhat (Querist)
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03 September 2009 Sir,

I understood the first one like credit the fixed asset and debit depreciation but second one debit the expenses in p&L? and credit what?

Thanks,

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Kaustuv

Kaustuv (Expert)
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03 September 2009 Please draw up the depreciation ledger to understand it the best. It would have better if I could show you the ledger. Please let me know if you are still not clear.

Prasanna Bhat

Prasanna Bhat (Querist)
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04 September 2009 Sir,

I will explain the scenario we had purchased asset for 25k in 2007 and we follow straight line method it has suffered depreciation of rs. 16,972/- till 31st July 09. As the management has decided to write off the asset what will be journal entry . My belief is

debit accumulated depreciation xxx
credit fixed asset xxx
Debit P&L A/c
credit Depreciation.

Kindly resolve