Dear all, kindly guide me how to book depriciation entry of FA purchased from donor funding. For example :- 1) FA account dr. Bank cr. 2) depriciation ac Dr. FA account cr. 3) Capital fund ac Dr. FA fund (capital Account).
Now, problem in there that if I dr. FA fund ac then which account should be credited. For correct entry.
Kindly let me know your suggestion
2 one is correct.
Provide for depreciation. You cannot book any expense unless it is provided for.
First know the basics.
@ Saurav hi, I was shocked but it is the truth. I dont rememberer learning provision for depreciation. It is completely AS where an actual provision is created. I’m surprised as well because, I haven’t seen Provision for it in my financial statement analysis nor IndAS/ IFRS Reporting books and slightly got misguided. I started writing here to someone saying there is No provision for depreciation and finally I got this concept here. It’s easy: https://www.tallyschool.com/depreciation-entry-in-tally/
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