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Former Member
Mar 05, 2009 at 04:56 AM

Depreciation is getting reversed


Dear Friends

-Purchased an asset of Rs.550 on 01.04.2008 and Depreciation rate assigned is 3.34%.

-Run the depreciation for april i.e., 1 period it has calculated Rs.2/-

-Run the depreciation for may i.e., 2 period it has calculated Rs.1/- (it is rounded off)

-On 01.06.2008 Sold partial asset of Rs.500 and gained profit on sale of asset is Rs2.73.

-Again on 01.06.2008 scrapped partial asset of Rs.25/- and posted to Loss on Sale of asset.

-In AW01N the planned value of depreciation was 0 from period 04 to 10.

-When I did depreciation run for July i.e., 4th period the posting was happened as follows:

PK D/C GL account Amount

70 Dr Accumlated depreciation Rs.1

50 Cr Depreciation on asset Rs.1-

My question here is why the depreciation account was credited and accumulated depreciation account is getting debited. What could be the problem, In which area it might be went wrong.