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Oct 14, 2009 at 07:17 AM

Transfer of depreciation amount to revaluation reserve



I have posted a depreciation in revaluation depreciation area. Entry passed was:

Depreciation on Revaluation A/c... Dr Rs. 1000 (P/L expense A/c)

To Accumulated Depreciation A/c Rs. 1000 (Balance sheet liabilities)

As per indian accounting standard, the depreciation on revaluation should not hit PL - expenses.

It should be debited to revaluation reserve which was credited at the time of creating revaluation.

In AO90, I am unable to specify balance sheet account in "Expense account for ordinary depreciation."

I am using "Expense account for ordinary depreciation" since SAP picks this field for depreciation posting.

Let me know how to transfer the depreciation amount in revaluation reserve