India Depreciation accounting.

[KP. Yohlannan]

I wanted to split accounting of depreciation amount applied charged.

1. A certain percentage of depreciation to be transferred to the B/S by the way of " Depreciation Fund" for future replacement of the assets and the balance amount to the "Depreciation expenses" in P/L account.

 

[Fidget]

Good luck with that! Depreciation charge against assets has nothing to do with the replacement of them.

 

[KP. Yohlannan]

I was not asking about replacement and depreciation as such. My Question was whether we could transfer a part of the depreciation charges or the whole of it to " Depreciation Fund". For Example Total depreciation expense is Rs. 100/- and can I apply / Transfer to Rs. 50/- Depreciation Fund in B/S and Rs. 50/- in P/L.

 

[Fidget]

No, you can't. For a depreciation expense of Rs. 100 It would be:

Dr: Depreciation expense in P&L Rs. 100
Cr: Accumulated depreciation account in B/S Rs. 100