Please reply. ......

Shubham kumar (.) (620 Points)

08 January 2014  
In one question of NPO given in trial balance value of building Rs.16,00,000. Provision for depreciation Rs.4,80,000. Rate of depreciation is 5%. In answer depreciation has been charged Rs5,60,000, i.e Rs 4,80,000+80,000. Here why we are adding provision for depreciation. & also explain how we create provision for depreciation in NPO. Thanks.