When the Accumulated depreciation account is not maintained, the journal entry for vehicle depreciation shall be Particulars Debit Credit Depreciation a/c Dr. (xxx) To Vehicle a/c (xxx) (Being DepreciationRead more
Whenthe Accumulated depreciation account is not maintained, the journal entry for vehicle depreciation shall be
Particulars
Debit
Credit
Depreciation a/c Dr.
(xxx)
To Vehicle a/c
(xxx)
(Being Depreciation charge on Vehicle made)
For example, let us assume that a vehicle (Bike) was purchased on 1st April 2019 with INR. 2,50,000, the rate of depreciation is 15% and also the Company follows the straight-line method of calculating depreciation.
Then the journal entries shall be,
The depreciation charge for the 1st Year
Date
Particulars
Debit
Credit
31-03-2020
Depreciation a/c Dr.
37,500
To Vehicle a/c
37,500
(Being Depreciation made on Vehicle)
The depreciation charge for the 2nd Year
Date
Particulars
Debit
Credit
31-03-2021
Depreciation a/c Dr.
37,500
To Vehicle a/c
37,500
(Being Depreciation made on Vehicle)
The depreciation charge for the 3rd Year
Date
Particulars
Debit
Credit
31-03-2022
Depreciation a/c Dr.
37,500
To Vehicle a/c
37,500
(Being Depreciation made on Vehicle)
The respective ledger accounts for all three years are given below:
Whenthe Accumulated depreciation account is maintained, the journal entry for vehicle depreciation shall be
Particulars
Debit
Credit
Depreciation a/c Dr.
(xxx)
To Accumulated depreciation a/c
(xxx)
(Being Depreciation charge on Vehicle made)
Taking the above said example,
The depreciation charge for the 1st Year
Date
Particulars
Debit
Credit
31-03-2020
Depreciation a/c Dr.
37,500
To accumulated depreciation a/c
37,500
(Being Depreciation made on Vehicle)
The depreciation charge for the 2nd Year
Date
Particulars
Debit
Credit
31-03-2021
Depreciation a/c Dr.
37,500
To accumulated depreciation a/c
37,500
(Being Depreciation made on Vehicle)
The depreciation charge for the 3rd Year
Date
Particulars
Debit
Credit
31-03-2021
Depreciation a/c Dr.
37,500
To accumulated depreciation a/c
37,500
(Being Depreciation made on Vehicle)
The respective ledger accounts for all three years are given below:
What is vehicle depreciation journal entry?
When the Accumulated depreciation account is not maintained, the journal entry for vehicle depreciation shall be Particulars Debit Credit Depreciation a/c Dr. (xxx) To Vehicle a/c (xxx) (Being DepreciationRead more
When the Accumulated depreciation account is not maintained, the journal entry for vehicle depreciation shall be
For example, let us assume that a vehicle (Bike) was purchased on 1st April 2019 with INR. 2,50,000, the rate of depreciation is 15% and also the Company follows the straight-line method of calculating depreciation.
Then the journal entries shall be,
The depreciation charge for the 1st Year
The depreciation charge for the 2nd Year
The depreciation charge for the 3rd Year
The respective ledger accounts for all three years are given below:
When the Accumulated depreciation account is maintained, the journal entry for vehicle depreciation shall be
Taking the above said example,
The depreciation charge for the 1st Year
The depreciation charge for the 2nd Year
The depreciation charge for the 3rd Year
The respective ledger accounts for all three years are given below:
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