What is the Journal Entry for Asset Depreciation?
Reduction in value of tangible fixed assets due to normal usage, wear and tear, new technology or unfavorable market conditions is called Depreciation. Journal entry for depreciation depends on whether the provision for depreciation/accumulated depreciation account is maintained or not.
Assets such as plant and machinery, buildings, vehicles etc. which are expected to last more than one year, but not for an infinite number of years are subject to depreciation. Below journal entry for depreciation assumes that depreciation is charged directly to the asset account.
Journal entry for depreciation (For each asset separate entry should be passed).
To Pass Journal Entry Login to ADDA >> Admin >> General Ledger >>Journal entries.
|Depreciation A/C||Asset A/C|
How to pass a depreciation entry to maintain a Gross Block?
Step 1. Create a Ledger "Accumulated Depreciation of relevant Asset (E.g. Accumulated Depreciation of Computer) under Login to ADDA -->> Admin --->> General Ledger-->>Chart Of Accounts-->>Asset. Step 2. Create a Depreciation head under General ...
I need to capitalise a Fixed Asset?
Answer-->> a) Go to General Ledger -->> Chart of Accounts -->> Assets --->> Assets Accounts -->> create new account. (For example - Fixed Asset - Computer). b) Go to General Ledger -->> Chart of Accounts -->> Expenses --> create a new account - Fixed ...
How to reverse a Journal Entry?
Step 1: Login to ADDA -->> Admin -->> General Ledger -->> Journal Entries. Step 2: Click on "Old Journal Entries" Note: Old journal entries will be shown on screen from the start date of the current financial year to date. Step 3: Select the date ...
How to pass a journal entry?
Step 1: Go to Admin -->> General Ledger -->> Journal Entries. Step 2: Click on the "Create Journal Entry" Tab. Step 3: Enter the Journal Notes i.e. Narration Step 4: Enter the Journal date and Amount. Step 5: Select the Debit Account And Credit ...
If I had purchased an asset before 01-04-2013 then how can I account for it?
If the Assets are purchased in the Last year, you can consider them as a Opening Balance. To record it, please pass a journal entries by following the below steps: Step 1: Go to General Ledger --->> Journal Entries -->> Create Journal Entry -->> ...