Transaction for change in Depreciation Method

If a company change its depreciation method from Straight line method to another method than what will be the impact for the difference?

Questions by hardikpatel   answers by hardikpatel

Showing Answers 1 - 9 of 9 Answers

niki_1079

  • Jan 1st, 2010
 

The difference should be debited or credited, as the case may be, to Profit & Loss A/c.
e.g. if earlier dep was 20000 and after change of method it becomes 25000 then 5000 should be debited to P&L A/c. and if Dep earlier was 20000 and after change of method it becomes 15000 then 5000 should be credited to P&L A/c.

prashant

  • Sep 11th, 2012
 

It should be adjusted in only that assests account by charging extra dep. or charging less dep........

  Was this answer useful?  Yes

Give your answer:

If you think the above answer is not correct, Please select a reason and add your answer below.

 

Related Answered Questions

 

Related Open Questions