what is the nature of accounts for provision for depreciation and provision for doubtful debts??
are they credited or debited? explain....
17 Replies
pankaj kumar
(studying )
(186 Points)
Replied 27 June 2012
provision for Depreciation is a nominal a/c.........while provision for doubtful debts is a personal a/c
........... these accounts are credited ven opened..
Premkumar VRR
(articled assistant)
(114 Points)
Replied 27 June 2012
Dear pankaj, only depreciation is nominal account and provision for depreciation is real account ,, because it will reduce from assets ,,
Abheer
(student)
(217 Points)
Replied 27 June 2012
I m relly confused....tell me which one is right please???
CA Vivek Kumar
(Practicing CA And GST Content writer for legalfilings.in)
(660 Points)
Replied 27 June 2012
provision for depreciation is real a/c
sangeeta
(student)
(69 Points)
Replied 27 June 2012
provision for depreciation & prov. for doubtful debts are real a/cs. they reduce the assets.
depreciation a/c is a nominal a/c. its closed at the end of year by transferrin to P & L a/c.
Ramanuj
(Accountant.)
(834 Points)
Replied 27 June 2012
Depreciation is nominal a/c & provision Depreciation & doubtful debts are real a/cs.
Vadivel
(Senior Executive - Finance)
(23 Points)
Replied 27 June 2012
Both these are for reduction of asset value and both are provisions for expense. Both should be in the same nature of accounts. It is nominal a/c.
Premkumar VRR
(articled assistant)
(114 Points)
Replied 28 June 2012
Hi friends , remember one thing , provision for depreciation reduces from fixed asset so it is real account and provision for doubtful account reduces from sundry debtors so it is personal account ... Fixed asset is real and debtors is personal , provision created for what purpose will determine its nature also ...
Premkumar VRR
(articled assistant)
(114 Points)
Replied 28 June 2012
Hi friends , remember one thing , provision for depreciation reduces from fixed asset so it is real account and provision for doubtful account reduces from sundry debtors so it is personal account ... Fixed asset is real and debtors is personal , provision created for what purpose will determine its nature also ...
ABHISHEKH
(Accounts Professor)
(22 Points)
Replied 05 March 2019
Provision for Depreciation Account is a real account as it is maintained against the fall in the value of a fixed asset which is in itself is a real account and it is treated as a liability for the business.
Bhupathi Ashok kumar
(8 Points)
Replied 17 June 2021
Provision for depreciation is valuation account or special account
It is a credit balance
But not a nominal account or liability account
But it is reduced from fixed asset in the balance sheet as per account standard 10
Bhupathi Ashok kumar
(8 Points)
Replied 17 June 2021
Provision for depreciation is valuation account or special account
It is a credit balance
But not a nominal account or liability account
But it is reduced from fixed asset in the balance sheet as per account standard 10
Bhupathi Ashok kumar
(8 Points)
Replied 17 June 2021
Provision for depreciation is valuation account or special account
It is a credit balance
But not a nominal account or liability account
But it is reduced from fixed asset in the balance sheet as per account standard 10
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