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    MrWayla's Avatar
    MrWayla Posts: 2, Reputation: 1
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    #1

    Dec 28, 2016, 08:04 AM
    Depreciation treatment in companies final account
    My question is about treatment of depreciation in Companies Final Account. What will be the treatment of depreciation if it is given in both the Trial Balance(Debit side or Credit side) and in adjustment.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Dec 29, 2016, 05:59 AM
    I would like to understand the question. Depreciation is both a debit and a credit; a debit to depreciation expense and a credit to accumulated depreciation. In the Trial Balance it will appear in the expense section and in the Fixed assets section thus it appears in the profit and loss account and in the balance sheet
    MrWayla's Avatar
    MrWayla Posts: 2, Reputation: 1
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    #3

    Dec 31, 2016, 08:41 AM
    I'm doing a chapter name Companies Final Account. I'm preparing Trading, Profit & Loss A/c and Profit & Loss Appropriation A/C and Balance Sheet from a given Trial Balance and some adjustment or additional information below the Trial Balance. My question is that what will be the treatment if depreciation is given on credit side of a Trial Balance(T.B) and what does that means because depreciation is an expense it should be on debit side of the T.B.
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