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Depreciation

Neena (Accountant) (60 Points)

23 September 2010

for preparing Trial balance for the yr 09-2010, do i need to take in to acount depreciation?, the assets acquired during the year are computer rs.108275 & furniture rs.3100, pls help

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4 Replies

CA.G.Muguntha Narayanan (Internal Auditor at TVS Motors) (2195 Points)
Replied 23 September 2010

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

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Dinesh Kumar Agarwal (Article clerk) (117 Points)
Replied 23 September 2010

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.

Neena (Accountant) (60 Points)
Replied 23 September 2010

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 ?