Question

Charged depreciation of ruppes 400 on furniture what is the journal entry for this?​

Answer 1

Answer:

The journal entry is straight-forward. A Debit (DR) to Depreciation Expense and a Credit (CR) to Accumulated Depreciation.

The Depreciation Expense account may be closed out to Cost of Goods Sold or Selling and Administrative Expense when the financial statements are produced. It’s rare to see Depreciation Expense as a stand-alone line-item on the Income Statement.

With respect to the Accumulated Depreciation account, it is a “contra” account, which means it’s an offset to an Asset account, such as Plant, Property, and Equipment. The Furniture account is probably a subsidiary account within PPE.

Answer 2

Answer:

Explanation:

Depreciation a/c dr 400

To Furniture a/c dr 400

(Depreciation is charged on

Furniture)

☆Note:

■ in the case of profit organisation the depreciation amt will be debited to profit and loss account and in balance sheet deduct from concerned asset

■ in the case of non profit organisation the depreciation amt will be debited to income and expenditure account and in balance sheet deduct from concerned asset