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Depreciation
I am working in a pharmaceutical wholesale shop as accountant.Can i charge depreciation on the assets here on whichever method convenient to me?? is there any rule saying that i should calculate depreciation in a particular method only???
Replies (15)
Yes, you can choose any method but depreciation rate will be also accordingly.
Is Your Pharmacy is Ltd or Pvt Ltd or others...?
No,it's a pvt wholesale firm..sole proprietorship firm.
Then You can depreciate Your assets as per income tax rates...
Ok sir..how to charge it??means whether i need to put entries every months(total dep/12)or a single entry annually??
You can provide single entry on annually...
Ok sir..thank u for the information
You are most welcome dear
1)Can i put journal entries for depreciation every month??is it compulsory to put depreciation journal entries at the end of the financial year only??
2)In my firm accumulated depreciation is maintained.so please help me with journal entries on depreciation in this case
2)In my firm accumulated depreciation is maintained.so please help me with journal entries on depreciation in this case
1. Yes... You can.
2. Dr. Depreciation A/c
Cr. Fixed Asset A/c
2. Dr. Depreciation A/c
Cr. Fixed Asset A/c
Sir then what about accumulated depreciation???
=Dr. Depreciation A/c
Cr.Accumulated Depreciation A/c
=Dr.Accumulated dep A/c
Cr Fixed Asset A/c
Is this right sir???
=Dr. Depreciation A/c
Cr.Accumulated Depreciation A/c
=Dr.Accumulated dep A/c
Cr Fixed Asset A/c
Is this right sir???
This is okay
=Dr. Depreciation A/c
Cr.Accumulated Depreciation A/c
for example :
If asset cost - 100
depreciation - 10 ( x 3 years) = 30
then accumulated dep value 30.
After that calculate FA value 70...
Both account will be maintain end of the years...
=Dr. Depreciation A/c
Cr.Accumulated Depreciation A/c
for example :
If asset cost - 100
depreciation - 10 ( x 3 years) = 30
then accumulated dep value 30.
After that calculate FA value 70...
Both account will be maintain end of the years...
Ok sir..thank u very much
You are most welcome dear
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