Is it neccessary to take provision for depreciation every month.
Provision for depriciation
shiv prakash (HDFC) (27 Points)
05 June 2011
shiv prakash (HDFC) (27 Points)
05 June 2011
Is it neccessary to take provision for depreciation every month.
Devendra
(Chartered Accountant)
(4775 Points)
Replied 05 June 2011
If you are making monthly statements (ie, P&L A/c and B/S) to find the exact net profit, then you can provide the depreciation monthly.
Regards,
Devendra
suja nair
(Finance)
(61 Points)
Replied 06 June 2011
As rightly said by Devendra, if you r preparing monthly statements, provision for depreciation to be considered. In case of Companies, every month end, before the GL closure, depreciaion run will take place in the system to account for the respective month's depreciation.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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