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Former Member
Mar 05, 2009 at 04:56 AM

Depreciation is getting reversed

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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.

Regards

Prabhakar