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Former Member

ACCUMULATED DEPRECIATION

HI

GURU'S

what is Accumulated depreciation:

is it comes under asset side, or liabilities side

is it reserve, how it will calculate

thanks

Arun

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 20, 2008 at 10:54 AM

    Dear Arun,

    Afetr execute the depreciation run below menrtioned entry will post.

    Accumulated depreiation is liability account and also reconcilation with asset

    Depreciation account Debit

    To Accumulated depreciation Credit

    Alwasy that accoumulated depreciation is liability account.

    Example : FA value : 100 in balance sheet .............Dep rate : 10%

    After one year and after execute the dep.run

    FA value should be same in Asset side............Rs.100 instead of reducing asset value that depreciation value palce at liability side as accoumulated depreciation.

    Depreciation ..............Rs.10

    Accumulated depreciation ...............Rs.10

    But in asset subledger through AW01N that asset net value is Rs.90

    Next year while run the depreciation,system automatically calculate depreciao on net value Rs.90

    Best Rgds.

    Mani

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 23, 2008 at 08:06 AM

    thanks

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