How to make fixed asset account under fixed installment method

>> February 14, 2009


Before making of fixed asset account, we must know following journal entries :-

1. for providing depreciation on asset at the end of the year

Depreciation account Debit
Fixed asset account credit

2nd For transferring of depreciation to profit and loss account

Profit and loss account debit
Depreciation account credit

In this method fixed asset account is very simple T shaped. There is not fixed Proforma for making fixed asset account

But can be making according to the condition of question.









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