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Class 11
Accountancy
Depreciation, Provisions and Reserves
describe in detail two methods of recording deprec...

Question:
Describe in detail two methods of recording depreciation. Also give the necessary journal entries.

Answer:

The two methods of recording depreciation are:-

a) Direct method : In this the depreciation gets charged by debiting depreciation account and crediting the asset account

The journal entries under this method are- Depreciation account to asset account, profit and loss account to Depreciation account.

b) Indirect method : In this the amount of depreciation is debited to depreciation account and credited to provision for depreciation account.

The journal entries under this method are- Bank account to asset account, Asset account to profit and loss account.

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Question:
Describe in detail two methods of recording depreciation. Also give the necessary journal entries.

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Question: Describe in detail two methods of recording depreciation. Also give the necessary journal entries.

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Question:
Describe in detail two methods of recording depreciation. Also give the necessary journal entries.