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Depreciation

If an asset say car is not used after certain period of time it will depreciate Is this the same case with car in show room


Prasanth kumar Kamisetty

Prasanth kumar Kamisetty

CA Foundation

11K+

25-Sep-20

47

Answers (6)

In case of showroom it's their STOCK IN TRADE


Nithish Kumar

Nithish Kumar

CA Inter

5K+

25-Sep-20

Nithish Kumar

In case of showroom it's their STOCK IN TRADE

Didn't understand


Thread Starter

Prasanth kumar Kamisetty

Prasanth kumar Kamisetty

CA Foundation

11K+

26-Sep-20

Its inventory


Suraj Lakhotia

Suraj Lakhotia

Admin

26-Sep-20

Suraj Lakhotia Admin

Its inventory

Though it may beinventory after some peroid of time i.e till the good is sold due to non usage wont they be depreciated


Thread Starter

Prasanth kumar Kamisetty

Prasanth kumar Kamisetty

CA Foundation

11K+

26-Sep-20

Thread Starter

Prasanth kumar Kamisetty

Though it may beinventory after some peroid of time i.e till the good is sold due to non usage wont they be depreciated

Depreciation is on Fixed assets. Inventory is valued on cost or net realizable value ( typically) at the end of every reporting period. So if there is a reduction in value of car in showroom, the dealer / company will take a loss on account of its reduction in value. That loss will be debited to P&L account


Sriram Somayajula

Sriram Somayajula

Admin

26-Sep-20

Ok sir


Thread Starter

Prasanth kumar Kamisetty

Prasanth kumar Kamisetty

CA Foundation

11K+

26-Sep-20

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