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Basics / August 16, 2021

Accounting Entries Related to Assets and Depreciation

Let us see the accounting entries related to assets and depreciation: S.No. Particulars Journal Entries 1 Purchase of Fixed Assets  Asset A/cDr.To Bank A/c  2 Expenses on purchase of Fixed Assets  Related Asset A/cDr.To Cash/Bank A/c  3 For Providing depreciation  Depreciation A/cDr.To Assets A/c  4 Transfer of depreciation to Profit & Loss a/c  Profit & […]

By · August 16, 2021 · 1 min read

Let us see the accounting entries related to assets and depreciation:

S.No.ParticularsJournal Entries
1Purchase of Fixed Assets Asset A/cDr.To Bank A/c 
2Expenses on purchase of Fixed Assets Related Asset A/cDr.To Cash/Bank A/c 
3For Providing depreciation Depreciation A/cDr.To Assets A/c 
4Transfer of depreciation to Profit & Loss a/c Profit & Loss A/cDr.To Depreciation A/c 
5Sale of Assets Bank A/cDr.To Assets A/c 

Depreciation  =   Cost of Assets−Scrap Value of AssetsEstimated Life of Assets