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Sir if we are asked to prepare financial statements From journal to b/s whether depreciation comes in trial balance?
Answers (20)
CA Suraj Lakhotia Admin
If entry is passed, it will appear in TB.
But max to max companies try to create provision for depreciation and show them as liability instead of reducing from asset
CA Suraj Lakhotia Admin
If entry is passed, it will appear in TB.
Then what about provision for depreciation? Will it be in TB ?
SAI AKASH GORU
This provision concept always plays with me 🥲 Even from foundation i have doubt regarding provision concept Provision for bad Debts and provision for depreciation
Provision which is created against an asset is not a liability. Just remember this. So provision for bad debt / dep is not a liability.
CA Suraj Lakhotia Admin
Provision which is created against an asset is not a liability. Just remember this. So provision for bad debt / dep is not a liability.
But for presentation purpose they won't reduce from asset value and instead put it in liability side Am i right?
SAI AKASH GORU
Sir could you please take a moment and give a brief about that particular topic 🥺
Classes are available for free till 8th. Select CA foundation and go through depreciation topic or any other topic which you are struggling with.
CA Suraj Lakhotia Admin
Classes are available for free till 8th. Select CA foundation and go through depreciation topic or any other topic which you are struggling with.
Okay sir thank you I need to adjust my time Because I'm attempting nov23😅😅ca-int
CA Suraj Lakhotia Admin
Provision which is created against an asset is not a liability. Just remember this. So provision for bad debt / dep is not a liability.
Sir Time stamp:- 5:03 Of 10th video of 17th module in ca foundation Satya sir said provision is liability clearly 🫤 But provision created against asset might not be a liability as you said In net method In B/S we write asset a/c ---- net amount In gross method In B/S we write asset a/c ---- gross amount (-) provision for depreciation ---- depreciation amount Am i right sir ?
