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depreciation accounting entry

online exam in depreciation accounting entry

Quiz Test 1 in Depreciation accounting

Quiz Test 2 in Depreciation accounting

Quiz Test 3 in Depreciation accounting

Quiz Test 4 in Depreciation accounting

Journal Entries or depreciation accounting entry

when the depreciation is directly charged to asset account.

Depreciation Account      Dr

To Asset Account

The asset account in this case appears at its reduced value in the balance sheet.

Depreciation expense is transferred to the debit of profit and loss account.

Profit and Loss Account    Dr

To Depreciation Account

 

when provision for depreciation account is opened

Depreciation Account        Dr

To Provision for Depreciation Account

Profit and Loss Account    Dr

To Depreciation Account

In this method, the asset account is not affected by the amount of depreciation and the value of asset appears in the ledger and the balance sheet at its original cost. The amount of depreciation written off is accumulated in provision for depreciation account.

depreciation accounting

Mock Test 1 in Depreciation Accounting

Mock Test 2 in Depreciation Accounting

Mock Test 3 in Depreciation Accounting

Mock Test 4 in Depreciation Accounting

Mock Test 5 in Depreciation Accounting

Mock Test 6 in Depreciation Accounting

The Institute of Charted Accountants of India has defined depreciation as “a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market changes. Depreciation is allocated so as to charge a fair proportion of depreciable amount in each accounting period during the expected useful life of the asset. Depreciation includes amortisation of assets whose useful life is predetermined.”

Depreciation Accounting has been defined by the American Institute of Certified Public Accountants as “ a system of accounting which aims to distribute the cost or other basic value of tangible capital assets less salvage (if any) over the estimated useful life of the unit (which may be a group of assets) in a systematic and rational manner. It is a process of allocation and not of valuation.”

Depreciation accounting is the process of allocating the cost of the tangible fixed asset less its salvage value over its serviceable life.

Depreciation is an expense that is to be charged against the revenue whether the business makes profit or incurs loss

Depreciation provides funds for replacing the asset when its useful life ends.Depreciation is not a process of valuation but it is an allocation. Even if the market value of an asset increases, depreciation has to be recorded because of allocation process.

online exam

online exam in depreciation accounting entry

Quiz Test 1 in Depreciation accounting

Quiz Test 2 in Depreciation accounting

Quiz Test 3 in Depreciation accounting

Quiz Test 4 in Depreciation accounting

Bank reconciliation statement

Mock Test 1 in Bank reconciliation statement

Mock Test 2 in Bank reconciliation statement

Rectification of Errors

Mock Test 1 in Rectification of Errors

Mock Test 2 in Rectification of Errors

Depreciation accounting

Quiz Test 1 in Depreciation accounting

Quiz Test 2 in Depreciation accounting

Quiz Test 3 in Depreciation accounting

Quiz Test 4 in Depreciation accounting

Preparation of Final Accounts for Sole Proprietors

Final accounts

Mock Test 1 in Final accounts

Quiz Test 2 in Final accounts

Online Exam Test 3 in Final accounts

Quiz Test 4 in Final accounts

Mock Test 5 in Final accounts

Consignment

Mock Test 1 in  Consignment

Quiz Test 2 in  Consignment

Online Mock Test 3 in  Consignment

Online Exam Test 4 in  Consignment

Joint venture

Mock Test 1 in Joint venture

Mock Test 2 in Joint venture

Profit and Loss  Appropriation Account

Mock Test 1 in P & L Appropriation A/C

Mock Test 2 in P & L Appropriation A/C

Mock Test 3 in P & L Appropriation A/C

Admission of partner

Mock Test 1 in Admission of partner

Mock Test 2 in Admission of partner

Mock Test 3 in Admission of partner

Partnership-Retirement of partner

Mock Test 1 in Partnership-Retirement of partner

Basics of company accounts

Mock Test 1 in Basics of company accounts

Mock Test 2 in Basics of company accounts

Mock Test 3 in Basics of company accounts

Mock Test 4 in Basics of company accounts

Mock Test 5 in Basics of company accounts

Accounting for non-profit organization

Mock Test 1 in Accounting for non-profit organization

Mock Test 2 in Accounting for non-profit organization

Computerized accounting environment

Mock Test 1 in Computerized accounting environment

depreciation journal entry

Depreciation Account      Dr

To Asset Account

depreciation entry

Depreciation Account      Dr

To Asset Account

accumulated depreciation account

Depreciation Account        Dr

To Provision for Depreciation Account

Profit and Loss Account    Dr

To Depreciation Account

accumulated depreciation entry

Depreciation Account        Dr

To Provision for Depreciation Account

Profit and Loss Account    Dr

To Depreciation Account