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Depreciation Format

The document outlines the accounting entries for asset purchases, disposals, and the provision for depreciation. It includes detailed journal entries for asset accounts, provision for depreciation accounts, and disposal accounts, highlighting the debit and credit transactions involved. Additionally, it suggests ways to reduce the risk of bad debts and addresses the increase in the provision for doubtful debts.

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Hooriya Usman
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161 views5 pages

Depreciation Format

The document outlines the accounting entries for asset purchases, disposals, and the provision for depreciation. It includes detailed journal entries for asset accounts, provision for depreciation accounts, and disposal accounts, highlighting the debit and credit transactions involved. Additionally, it suggests ways to reduce the risk of bad debts and addresses the increase in the provision for doubtful debts.

Uploaded by

Hooriya Usman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Double entry for depreciation

Asset Account journal

Details Debit (Dr) Credit (Cr.)

Asset Xxxx
Bank Xxxx
( for asset purchased for cheque/cash)

Asset xxx
Name of the creditor Xxx
(for asset purchased on credit)

Disposal of assets (Cost price) Xxxx


Asset Xxxxx
(for the asset disposed )
ASSET ACCOUNT
DR CR

Date Detatils Amount Date Details Amount


! Jan Balance b/d (Value of xxx Disposal(cost price) xxx
the asset carried down (sold)
from the last year)
Bank (Purcnase) xxx
Name of the creditor xxx Balance c/d xxx
(Credit purchase)
xxx xxx
Balance b/d xxx

1
PROVISION FOR DEPRECIATION JOURNAL

Date Details Debit (Dr) Credit (Cr.)

Income statement xxxxx


Provision for depreciation Xxxx
(for the amount of current depreciation
each year)

Provision for depreciation xxx


Disposal account Xxxx
( for the amount of accumulated
depreciation -depreciation from the date
of purchase date of sale)
PROVISION FOR DEPRECIATION ACCOUNT
DR CR

Date Details Amount Date Details Amount


Disposal of asset xxx 1 Jan Balance b/d (amount Xxx
( for the amount of of the provision carried
accumulated down from the previous
depreciation [AD]- year)
depreciation from the
date of purchase to the
date of sale for the
asset disposed)
31 Balance c/d xxx 31 Dec. Income statement( with Xxx
Dec. amount of current year
depreciation)
XXXX XXXX
! Jan. Balance b/d

2
DISPOSAL ACCOUNTS JOURNAL

Date Details Debit (Dr) Credit (Cr.)

Disposal of asset xxxxx


Asset Xxxx
(for the asset disposed)

Provision for depreciation Xxxx


Disposal of asset Xxxxx
( for the accumulated depreciation)

Bank/name of the creditor xxxxx


Disposal of asset Xxxx
(for the sale of the asset)

Disposal of asset XXX


Income statement XXX
( for the profit on the sale of the asset)

Income statement xxxx


Disposal of asset Xxxx
(for the loss on the sale of the asset)

DISPOSAL Account DR
CR

Date Details Amount Date Details Amount

Asset- [cost price] xxxx Provision for depreciation ( for Xxxx


(for the asset disposed) the accumulated depreciation)
Bank/name of the creditor Xxxx
[SELLING PRICE](for the sale of
the asset)
Income Statement (for the xxxx Income Statement (for the Xxxx
profit on the sale of the loss on the sale of the asset)
asset)
xxxx Xxxx
Balance b/d

3
Suggest ways in which Stewart Hanson could reduce the risk of bad debts in the future.

The balance on the provision for doubtful debts had increased .Suggest reason for
the increase..

4
10.

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