Question

journal of depreciation on building

Answer 1

Depreciation on Fixed Assets —

Depreciation --->
As per Accounting Standard VI, Depreciation is the reduction in the value of fixed Assets due to :-
a) Wear & Tear, b) Effluxion of Time, and c) Obsolence.

Fixed Assets --->
Fixed Assets are those Assets which are meant for future use, and has the property of Depreciation or Appreciation. Examples :- Furniture, Land & Building, Vehicles, etc..

The value of Fixed Assets descreses with it's continous use in the business. The value of the fixed Assets goes down every year. So, Depreciation is provided every year on fixed assets to show their correct value in the Balance Sheet.

Depreciation is a non-cash expense, because there is no outflow of funds in this case.

The Journal entry for depreciation is as follows :-

Depreciation A/c. Dr... (Amount)
To Fixed Assets A/c. (Amount)

(Being Depreciation provided on Fixed Assets).

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[Q]. Journal for Depreciation on Building.

Depreciation A/c. Dr... (Amount)
To Building A/c. (Amount)

(Being Depreciation provided on building).
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Hope my answer helped you! :)

Answer 2

Your Answer : -


Depreciation Account Dr.------(Amount)

To Building Account ---------- (Amount)

[Being depreciation charged on building]