Depreciation

Dear Neena,

         you can post the journal entry,

 Depreciation A/c.          Dr.

             To Furniture

              To Computer

(Being Depreciation on furniture and computer charged to dep a/c)

Once u do this,the amount of dep would come in the T.B. While preparing p&l, the entry would be

P&l A/c     Dr

       To Depreciation

(Being depreciation charged to p&l a/c)

       So u need not again adjust the amount in Balance Sheet

If you take depreciation in trial balance than assetes amount reduded by dep. amount and dep amount stands as expenses. thus Dr. side one decrease  and then increase thus no effect on trial weather provided or not. But if provided than as said Mr. Narayaran you further not to edit ur final account prepared as per trial balance.

so depreciation amount say 10% of 3100 is debited in TB and 3100-310= 2790 is also debited...and while preparing P&L 310 is taken as expense (debited in P&L)& rs. 2790 is shown on the asset side of BS...am i right ?

ya, its right friend