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What will be the treatment of Provision for Depreciation on Machinery on 1.1.2013 â?¹ 800 in the Credit side of the Trial Balance ?
Answers (25)
CA Suraj Lakhotia Admin
current depreciation will be added and the total provision will be reduced from Fixed Assets.
But sir if I do so the answer will not match with the answer 58800 in assets side of balance sheet
CA Suraj Lakhotia Admin
current depreciation will be added and the total provision will be reduced from Fixed Assets.
Sir, there is already this question been asked in our forum. And there you can see the trading a/c and p&l a/c and also balance sheet. There trading and p&l a/c is correctly matched there but balance is came short by 800 on both sides. Please check sir.
Vijay K
This is that answer, sir.
Depreciation on building in PL is only 200. Balance sheet is 200 + 800 = 1000
CA Suraj Lakhotia Admin
Depreciation on building in PL is only 200. Balance sheet is 200 + 800 = 1000
But how, they have given 1000 in trial balance and other than that there is no information for the depreciation of building. I don't get it sir. Even if we do like that then the p&l will be short sir.
Vijay K
This is the full page picture of that question sir.
The depreciation on building which is a debit balance is an expense.
CA Suraj Lakhotia Admin
The depreciation on building which is a debit balance is an expense.
Also note that the items given in trial balance will appear only once - either in trading/pl account or balance sheet.
CA Suraj Lakhotia Admin
Also note that the items given in trial balance will appear only once - either in trading/pl account or balance sheet.
So depreciation on building in PL is 1,000.
CA Suraj Lakhotia Admin
So depreciation on building in PL is 1,000.
Yes sir, I did that by referring the 9th point of this picture. But still I didn't know what mistake I did.
CA Suraj Lakhotia Admin
So depreciation on building in PL is 1,000.
So why the answer of Balance Sheet is not matching ? Where is wrong
Thread Starter
Aditya BirlaSo why the answer of Balance Sheet is not matching ? Where is wrong
Depreciation on building - Rs. 1,000 to go to PL. This will not impact the balance sheet.
Thread Starter
Aditya BirlaI already know that
There is still a difference 800 in answer in the both side of Balance Sheet
CA Suraj Lakhotia Admin
Pls share your final balance sheet
Sir Asset side is matching if you deduct only current depreciation on Machinery.But liabilities side is not matching.Please prepare the balance sheet for us sir.please help us sir.
Thread Starter
Aditya BirlaSir Asset side is matching if you deduct only current depreciation on Machinery.But liabilities side is not matching.Please prepare the balance sheet for us sir.please help us sir.
These kinds of problems have been solved in our course - please enroll
Sriram Somayajula Admin
These kinds of problems have been solved in our course - please enroll
Yes sir. I have learnt all the basics from Sathya Raghu sir. But still I don't know where the mistake is. Is it a mistake done by me (or) the printing mistake of book. Please check and give a solution for this problem sir.
Sriram Somayajula Admin
These kinds of problems have been solved in our course - please enroll
I have no sufficient money