Namaste, we are here again. Sir, you are looking a little
big today, so I have tried to increase the scope a little.
Yes sir.
Let's discuss this case once with Provision for
Depreciation.
Yes, that's why we have come today.
So, the same example on your computer screen.
Case number 1 is the page.
Let's read it once.
A enterprise purchased on 1st January, 2023 certain
machinery for Rs.582,000 and spent Rs.18,000 on its
erection.
On 1st July, 2023, another machine was purchased for
Rs.2,00,000.
On 1st July, 2024, the first machine was sold.
On 3rd, 6th and 8th, the same day, the new machinery was
purchased for Rs.4,00,000.
Adopt 10% WDVA, do general analysis and create a machinery
account.
And...
In this, you have to create a Provision for Depreciation
account this time.
And...
Provision for Depreciation account.
So, sir, can we note this example again?
I would like to do it once by taking 2 minutes.
Anyway, we are going to do its complete solution again.
Complete solution will be done again.
Because everything will change.
Depreciation entry will be changed.
Sales entry will be increased.
So, I would like you to change it once.
Write it down again.
Okay, sir. We are ready.
Pause the screen once and note it down.
Okay? Okay, sir.
I will clean this mess from above.
And I will name it as Case No. 2.
Okay, sir.
We will pause and note it down.
You go ahead.
I said, okay.
We will delete the rest of the written portion.
We will not delete this portion.
It will be useful for us.
We have made this.
Okay? We will not delete this page.
And let's delete all this.
Or let's not delete it.
Let's start from here.
Okay.
Case 2.
First of all, we will do Journal Entry.
We will start with Journal Entry.
First of all, 1st of January, 2023.
The day you buy Machinery No. 1.
We will do Entry.
Machinery 1.
Account Debit.
To Bank Account.
Machinery 1.
Account Debit.
To Bank Account.
How much did you buy? 6 Lakhs.
Entry will be the same.
6 Lakhs.
Write it properly.
It should be fun.
Read it later.
Do revision.
Half of the time, it is not fun in revision.
There is Khichdi in the notes.
There is no taste of Dhela in the notes.
Then I don't feel like reading it later.
I feel that it is useless.
Write it properly.
So that you feel like reading it later.
Being Machinery No. 1.
Purchased.
This time, we will write the narration in Telly.
And.
Payment made by cheque.
And.
Payment.
Made by cheque.
Payment made by cheque.
Write it.
Okay.
After this, we bought Machinery 1.
And this year.
After 6 months.
On July 1, 23.
We bought another machine.
There is no provision in buying machinery.
The entry to buy machinery will be the same.
Provision comes to save machinery from depreciation.
When depreciation will be discussed.
Then provision will be discussed.
Nothing till then.
Till then, keep doing the same entries.
So buy Machinery No. 2 too.
Machinery 2.
Account debit.
2 lakh rupees.
To bank account.
2 lakh.
Being.
Machinery No. 2.
Purchased.
And.
Payment made by cheque.
And.
Payment.
Made by cheque.
Payment made by cheque.
Okay.
After July 1, 23.
Now comes the date of depreciation.
Date by date.
The date of depreciation.
The date of dates.
31st December, 2023.
All dear.
Smart.
Intelligent.
Genius.
Children answer.
What will be the entry of depreciation in this case?
Sir, normal entry is.
Depreciation account debit to machinery.
When we don't make provision.
Which we did in case 1.
But this is case 2.
Here we are making provision.
Provision for depreciation account.
So what will happen?
To save machinery from beating.
Provision will come.
To save machinery from depreciation beating.
Provision will come.
To provision for.
Depreciation account.
To provision for depreciation account.
How much depreciation?
On 31st December, 2023.
10% on 6 lakhs.
60,000 on 2 lakhs.
10,000 for 6 months.
60,000 on machinery no.1.
All figures are already clear.
That's why we are continuing this example.
So that figure is clear.
10,000 on machinery no.2.
So this is total depreciation.
70,000 70,000 70,000
Instead of machinery.
Earlier we credited machinery no.1 and no.2.
Instead of that,
New account came.
Provision for depreciation.
He is saying machinery no.1 and no.2.
Don't worry. I am there.
Provision for depreciation
Covered machinery no.1 and no.2.
And suffered depreciation beating.
But Machinery no.1 and no.2
Will take revenge.
But now
Everything is going well.
New relationship.
Everything is going well.
Food is being eaten on time.
Real time is being sent.
Good night is happening on time.
Good bye is being given to anyone.
You will know later.
How long relationship is going on.
You will know in some time.
What to do here?
Close your account.
Come in next year.
If you say this again.
You will see.
You are forgetting P&L to depreciation.
You are forgetting.
Profit and loss account.
Debit to depreciation account.
Entry comes in both cases.
Even though depreciation
Is hitting you.
Or provision is there.
You will get depreciation.
Accounting principle will be followed.
P&L to depreciation account
Entry will always pass.
No one will stop.
No one can stop.
It has
VIP card.
No one stops it.
Entry is there in both cases.
P&L to depreciation.
You can enter next year.
Date will come in next year.
1st July 2024.
See your chart.
If you don't remember question.
Entry to buy machinery.
Entry to buy on 1st July 2023.
Depreciation on 23rd December.
Transfer to P&L.
Now you are in year 2024.
In year 2024.
When is the first event? 1st July 2024.
What are we doing?
We are buying machinery.
We are buying machinery no. 3.
Entry will be there.
Machinery 3.
Account Debit.
To Bank Account.
Sir, There is no narration above.
You have to write in telly also.
First write its narration.
Bank.
Provision for
Depreciation Account Opened.
Sir, you have to write
Provision for depreciation account
Opened.
Why provision for depreciation account opens?
It opens for depreciation.
Okay.
Bank.
I have to write in telly.
That's why I am writing narration.
Depreciation transferred to
Profit and loss account P&L.
Machinery 3.
Account Debit.
To Bank Account.
4 Lakh.
Machinery 3 purchased. Bank. Machinery number 3 purchased.
And payment made by cheque.
Machinery number 3 purchased. And payment made by cheque.
Depreciation account debit to provision for depreciation
account.
Depreciation account debit to provision for depreciation
account.
P&L account debit to depreciation account.
P&L account debit to provision for depreciation account.
10, 9, 8, 7, 6, 5, 4, 3, 2, 1 EA sports into the game.
P&L account debit to provision for depreciation account.
Bank depreciation charged on Machinery 1 from 1 January 24
to 1 July 24.
Bank depreciation transferred.
On Machinery 1 transferred from provision for depreciation
account.
On Machinery 1 transferred from provision for depreciation
account.
On Machinery 1 transferred from provision for depreciation
account.
On Machinery 1 transferred from provision for depreciation
account.
On Machinery 1 transferred from provision for depreciation
account.
On Machinery 1 transferred from provision for depreciation
account.
On Machinery 1 transferred from provision for depreciation
account.
On Machinery 1 transferred from provision for depreciation
account.
6,87,000 What value is left in your book of machinery on
the day of sale? 5,13,000 And what is the sale price?
How much did you sell it for? 3,86,000 So in your books, it
is worth 5,13,000
We are getting only 3,86,000 from the market
So it is a loss of 1,27,000 5,13,000 minus 386,000
So you got a loss of 1,27,000
Yes sir, we got a loss of 1,27,000
Very good, well done
Now come to the last day, 31st December, 2024
Depreciation has to be applied on machinery 2 and 3
Depreciation Account Debit 2
The same will come, Provision for Depreciation
Provision for Depreciation Account will maintain its
loyalty to machinery 2 and 3
It will save them from depreciation
Till when?
Till they don't betray it
Till no one betrays it, it is very nice
Depreciation Account Debit 2
Provision for Depreciation Account
So tell me, how much is machinery 2? 19,000 You have seen
on your example
Plus, how much is machinery 3? 20,000 You took this
machinery 2 on WDV 2,00,000 minus 10,000 10% of 1,90,000
You bought it for 2,00,000
Depreciation took 10,000 last year 10% of 1,90,000 19,000
And this 4,00,000 machinery on number 3 10%, 40,000
That too for 6 months
Half, that is 20,000
So this is total 39,000
And this is also 39,000 49,000, 49,000
Depreciation Account Debit 2
Provision for Depreciation Account
Being
Depreciation
Charged to Provision for Depreciation Account
Even today, Depreciation is transferred to Provision for
Depreciation Account
Being Depreciation Charged to Provision for Depreciation
Account
For Machinery 2 and 3
You have to write a little long narration
Because there should be a good statement in Depreciation
What did you do in the entry?
This is a very much requirement
While entering Depreciation in Teleprime
Yes sir, we will take care
So you have written this narration
After this, do one more entry
P&L Account Debit to Depreciation Account
39,000
39,000 Being Depreciation Transferred
Transferred
TF means Transferred
You can write it in short form here
You can write it in short form here, there is no problem
Transferred is very common
TF short form, everyone knows
Yes sir
Write it
So friends, we have done all the entries here
And what difference did we find in the entries?
Now we will compare the entries
What difference did we find in the entries?
Now we will compare the entries
Keep the last solution open with you
I am also taking you there
Is the first entry the same?
Yes sir
Is the second entry the same?
Yes sir
There is no role of provision in the entry to buy
No problem
What comes instead of Depreciation to Machinery?
Depreciation to Provision for Depreciation
Till when?
Till the sale of it
P&L to Depreciation is the same
Machinery to Bank is the same
Instead of Depreciation to Machinery
Depreciation to Provision for Depreciation
P&L to Depreciation
And this entry
Bank to Machinery 3, 6, 7
There is another entry in exchange of provision
Provision for Depreciation Account
Debit to Machinery
No. 1 Account
Total Depreciation till date
Since I bought it, till date
Entry of Loss
Loss on Sale of Machinery
Debit to Machinery Account
And then
Depreciation to Machinery
Instead of 2 and 3
Provision for Depreciation Account
Provision will save Machinery 2 and 3
Because of Depreciation
As long as it is with it
And then this entry
P&L to Depreciation Account
Debit 39,000 39,000 This is the change due to Provision
If you have done the comparison
Then you should understand
Provision is an account which is opened
Till the sale of Machinery
Till then to save it from Depreciation
So that in its balance sheet
Value looks good
Cost price looks good
Reduced value should not be seen
To show good value in the balance sheet
And there is another benefit of Provision for Depreciation
Account
As much as Depreciation is applied on a machinery
Total Depreciation on Machinery
Reflects in that account
Since the purchase
Depreciation till date
Reflects clearly in that account
Yes sir, ok
Let's go my dear friends
Now we will move ahead
And we will make accounts
What all accounts will we make
Of Machinery
And Provision for Depreciation
Let's go
Let's make Leisure
How it is said in Dhamaal
Let's go
When that girl hangs
Then it is said
Let's go
Machinery Account Debit
I got emotional
I got sentimental
Debit will come here
Credit will come here
Date
Sir, don't remind me of the date
We try a lot
To go on a date
Somehow By borrowing from a friend
We arrange money
And the date
At the last time
Gives some other date
Sir, when will
The date of date
Come in our life
The date of date
Will come in your life
The day
When you will be successful
If you have money in your pocket
Then you get everything
This is the truth of life
If you have less money in your pocket
Then you get less things
This is also the truth of life
Practical reality
If someone is lucky
Then without money
He can get good relations
There is no doubt in this
But then you need luck
In rare cases
Even the rich people
Are seen that
They don't have good relations
In life
All the examples are there
The thing is
At what time
Which example
You can take
And make your heart happy
This is the name of life
That's it
By looking at others
He doesn't even need
To come on himself
Machinery account
This is done
Okay sir
After that
Provision for depreciation account
Not gonna make it
Provision for depreciation
This is the account of that lover
Children call it
The account of lover
Date Particulars Amount
Date
Particulars Amount
Format it
Without any delay
Date particular amount
Here and here
Okay Let's start posting
Our entries one by one
First entry
Machinery account
Debit to bank account
Will come here
Sir, change the color of the pen
1st January 2023 Machinery account
Debit is happening
In our entry
With 6 lakh rupees
So in machinery account
Debit side will come 6 lakh rupees
And name will come
Which is written
Under machinery account
In the entry
What is written
Under machinery account
This To Bank To Bank Not to bank
To Bank To Bank Account
6 lakh rupees 6 lakh rupees 6 lakh rupees
Then next entry
Next entry 1st July 2023 Write number 1
In front of bank account
From here you get to know
Machinery bought 1
And then write
To bank account
Number 2
That entry is also same
So it will also come here 2 lakh rupees 2 lakh rupees
Very good sir
Their 2nd effect
Will go to bank account
Your bank balance
Will be less than 6 lakh and 2 lakh
In bank account
Credit side will be seen 6 and 2
But because
We are not making that bank account
We don't have
We have to learn machinery
And provision
So we will learn that
We will not waste extra time
In telly
We check once
That bank balance
Is reduced or not
In telly
We get our confirmation
So we make manually
Bank account
What to do
Okay sir
So we posted 1st entry 2nd entry
Posted 3rd entry
Deption account
Debit to
Provision for depreciation
Enjoy this entry
Friends
Hmm
In this entry
There is no machinery account
Okay Sir what is written below
I have shown the calculation
That 60,000 machinery is made
And 10,000 machinery
This is calculation
There is no machinery account
In this
So forget this
That entry can come
In machinery account
Any effect of this entry
In machinery account
Is due to coming
So the effect of this entry 1st will go to depreciation
account
But we are not making that
If we were making
Deption account
Then we would have shown the debit side 70,000 to provision
for depreciation
We are not making that
There is no need to make a very small account
Okay Okay
To provision for depreciation
Means in this entry
Provision for depreciation account is happening 2 means
credit 2 means credit is happening
How much money 70,000 So provision for depreciation account
How much credit side will come 70,000 70,000 70,000 70,000
70,000 By which name
That is written above
By depreciation account
Oh By depreciation account
31st December, 2023
31st December, 2023 and write it clearly that how much is
the cost of machinery 1? 60,000
and how much is the cost of machinery 2? 10,000 write it
clearly 60,000 or 10,000
we will clarify this in the telly in the narrations that
60,000 for the first machinery and 10,000 for the second do
not worry at all
what is our next entry sir? next entry is your P&L account
debit to depreciation it will automatically telepass this
it will automatically telepass this and sir manually we are
not making P&L account what we are doing now we are not
making a new deption account so there is no need to put the
effect of this entry next entry is 1st July, 2024 machine
account debit to bank yes sir, let us write this in the
machinery account you will not improve, tell the truth sir,
what mistake have I done? oh
you are asking what mistake have I done?
I have not told you if you are working manually then you
have to close the account on the last date on the last
date, sorry 31-12-23 you have to close the account yes,
yes, ok sir, so close the machinery account write here
31-12-2023
by balance CD
write total balance is 6 and 2 lakhs
in which machinery number 1 is 6 lakhs
and machinery number 2 is 2 lakhs 6 and 2 is 8 lakhs 8 lakhs
8 lakhs 8 lakhs
and close the provision for debtion account here 31-12-2023
total depreciation is 70,000 balance closing is 70,000 in
which 1 and 2 1 is 60,000 2 is 10,000 here is 70,000 70,000
and here also 70,000 70-70
ok sir now next step is to make opening balance for closing
balance yes, this is also there now make opening balance
for closing balance write here 1-Jan-2024 these are the
benefits of Tally you don't have to do repeated work 2
balance BD 8 lakhs 2 balance BD 8 lakhs in which machinery
number 1 and 2 1 is 6 lakhs and 2 is 2 lakhs 6 and 2 is 8
lakhs ok sir after that 1-Jan-2024 buy balance BD
buy balance BD total is 70,000
1 is 60,000 and 2 is 10,000 1 is 60,000 and 2 is 10,000
total is 70,000-70,000 ok sir write here then we will move
to next transaction yes sir we have written now next entry
1-Ju-2024 the day before you are buying one more machinery
1-Ju-2024 to bank account number 3
machinery number 3 total is 4 lakhs 4 lakhs 4 lakhs means 4
lakhs yes sir after that
depreciation account debit to provision for deposition we
have posted this entry machinery to bank 4 lakhs
depreciation account debit to provision for depreciation
account we have to make depreciation account there is no
need to show debit side provision for deposition account
write credit side write credit side 27,027,000
by depreciation account write this on machinery 1 by
depreciation account this is machinery number 1 when?
1-Ju-2024 1-Ju-2024 1-Ju-2024 yes sir next entry is P&L
account debit to depreciation account we don't have to do
anything we are not making P&L or Dept account next entry
is provision for depreciation account debit to machinery
account see this entry's posting carefully if you want to
understand double entry's effect this entry provision for
depreciation account debit 87,000 to machinery
1 account 87,000 see this entry's effect very carefully how
sir? see this entry in your provision for depreciation
account debit side will go 87,000 and in your machinery
account credit side will go 87,000 because we are making
both accounts provision for dept and machinery so what we
have to do in provision for depreciation account debit side
will go 87,000 write here
in provision for depreciation account debit side will go
87,000 what will be the name below machinery number 1
account machinery number 1 account 1-Ju-2024 1-Ju-2024 and
in machinery account credit side will go 87,000 credit side
will go 87,000 by provision for depreciation this is the
change this is the change my dear friends see carefully
this is called change in machinery account there was no
depreciation 6 and 2 6 and 2 see your last solution what
happened in first year see first case see
case 6 and 2 machinery depreciation was there in machinery
account 60, 10, 70 6,000-5,40,000 and 2,00,000-1,90,000 and
2,00,000-1,90,000 but what is happening here 6,00,000
machinery was 6,00,000 2,00,000 machinery was 2,00,000 as
it is maintained at 8,00,000 that is why we opened
provision that depreciation here in machinery account in
case 1 by depreciation 60, 10, 70 this is provision for
depreciation account machinery account credit side do not
decrease machinery account 6,00,000-8,00,000
now machinery is leaving it now it will decrease now it
will return depreciation whatever provision for
depreciation 60 and 27 whatever provision for depreciation
credit depreciation this one is 60
I will highlight with other color red color 60,000 and
27,000 whatever depreciation provision for depreciation
credit side provision for depreciation 87,000 credit side
depreciation this is called return now credit in machinery
account balance of machinery account will decrease last day
of sale ok sir ok sir this entry 87,000 we put in both
places here also and here also yes sir yes sir are you
saying yes sir or sir search meme is running on insta no
one can catch on insta fortnite or 9-4 or
4 options are written which is right stay away from insta
yes sir ok next entry next entry bank account debit to
machinery account 3,86,000 bank account credit credit side
3,86,000 come credit side 3,86,000 3,86,000 name buy bank 1
july 24 buy bank buy bank this entry also posted this entry
also posted congratulations next entry next entry loss on
sale of machinery account credit 1,27,000 credit side
1,27,000 1,27,000 buy loss loss on sale of machinery account
1,27,000 1 july 2,024 1 july 2,024 this entry also posted
We are not making a machinery account from Lawsons.
So this entry is also posted.
This entry is also posted.
Next entry.
Depreciation account debit to Provision for Deption.
Provision is still alive.
Provision will keep saving them.
It will keep saving Machinery 2 and 3.
So credit 39000 to Provision for Deption account.
Come on.
Write 39000 rupees on the credit side of Provision for
Deption account.
39000 rupees.
On which day you have to write 39000?
You have to write in the name of Buy depreciation.
Sir, last day of the year.
31st December 2024.
Buy depreciation account.
And write.
How much is 2 and how much is Machinery 3? 2 is 19000 and 3
is 20000.
20000.
This is how it is coming.
39000.
Write.
Dear children, write.
Write.
Write down.
Say write down.
Sir, I have written.
Next entry.
P&L to Deption.
You don't have to post this.
We have posted all the entries.
Now close the Machinery account.
Friends and friends.
Now the last day of the year.
Let's play closing.
Let's close the Machinery account.
And I write.
From the pink color point.
Close the Machinery account.
How much is the total of the debit side?
Sir, the total of the debit side is coming.
8 and 4 is 12 lakh rupees.
I write here.
The total of the debit side is 12 lakh rupees.
Very good.
What is the total of the credit side?
87 and.
386 and 127.
How much will it be?
87.
386 and 127.
6, 7, 13, 7, 20, 2, 8, 2, 10, 6, 8, 2, 20, 2.
3, 2, 5, 1, 6.
6 lakh.
The total of the credit side is 6 lakh.
Now all the smart kids must have got a hint.
What I want to say.
And why I am writing like this.
All the smart kids must have got a hint according to me.
Friends.
How much was your first machine? 6 lakh.
The second machine was 2 lakh.
It became 8 lakh.
And the third machine was 4 lakh.
It became 12 lakh.
Divide the 6 lakh machinery out of 12 lakh.
The first one is gone.
Clear the account book.
So which one is left?
The second and third machinery.
2 lakh and 4 lakh.
So the balance should be 6 lakh.
So the balance is 6 lakh.
See 12 minus 6.
Okay.
So sir, this machinery 2 is still alive at 2 lakh.
This is the provision for deposition.
It is helping 2.
It is helping the second machinery number 2.
Similarly, the machinery number 3.
It is 4 lakh.
4 lakh will be the reflect.
What was there in the last case?
The last case we solved.
See the machinery account of that.
What happened in the second year?
In the second year.
See this.
The depreciation reduced from 19,000 to 71,000.
And the third machinery reduced from 20,000 to 83,000.
So in this case, what we are doing in case 2, will be with
demand.
Our original cost price is 2 lakh and 4 lakh.
Total 6 lakh.
So write here.
31st December 2024.
Write 31st December 2024.
Buy balance CD.
The total will be 6 lakh.
In this, how much is the balance of 2 and how much is the
balance of 3?
Sir, the balance of 2 is 2 lakh and the balance of 3 is 4
lakh.
The total of both sides will be 12 lakh.
And 12 lakh.
Write.
Sir, I have written.
Very good.
Done.
Come to the Provision for Deposit Account.
Close it.
Put the total of the credit side of the Provision for
Deposit Account.
Calculator, calculator, where are you?
Calculator, calculator, where are you, my friend, my friend?
Can't find it?
Shall we run it on mobile?
Yes, let's run it on mobile.
You wait for a minute.
I'll be back in 2 minutes.
No, I mean, you wait for a minute.
I'll be back in a second.
Calculator.
See, see what I have brought.
Calculator.
The total of the credit side is 70,000
plus 27,000 plus 39,000.
136,000 136,000 And the total of the debit side is only
87,000.
The debit side is the smaller side.
So see, from 136,000 minus 87,000 how small is the debit
side?
It's smaller than 49,000.
So we'll write the smaller side, debit side 49,000 so that
both sides are equal.
We write the side which is less.
This is the balancing rule of our account.
So how much will it be?
Here, 1,36,000.
And here also, 1,36,000.
Both sides are equal, 1,36,000 and 1,36,000.
And what will we call this?
Balance CD.
Okay, sir.
So see, what is the depreciation on 2 till now?
Tell me the depreciation on 2 till now.
Sir, this is 10.
Very good.
And 9,000...
No, sorry.
This is 19,000.
10 is last year, and 19,000 is this year.
Total 29,000, 29,000.
Yes, sir. Very good.
And on number 3, this is 20,000.
20,000.
So 29 and 20, how much is this? 49,000.
29 and 20, this is 49,000.
Here, your provision for depreciation account is also
closed.
Provision for depreciation account is also closed here.
Okay, sir.
Okay.
So first, do the noting if anything is left here.
And do the noting here if anything is left.
If anything is left, then do the noting and go here.
Pause and write.
Okay? Okay, sir.
And pause on the entry page if anything is left here.
If anything is left here, then pause here.
Here.
And here.
Okay? Okay, sir.
And those people who have not written case 2 again, pause
here and write case 2.
I am not saying this again and again.
It is for your benefit.
It is very useful.
I am not saying this again and again.
Write it.
And I say, write and click the photo of these examples and
take it on your mail ID.
That is the best.
Write and take it on your mail ID.
Brother, that is a very good thing.
If you take it on your mail ID, that is very, very, very
good.
Hmm.
Okay, sir.
That thing is yours forever, right?
Yes, sir.
I understand what you are saying.
Good.
If you do, you will be fine.
Otherwise, it is a problem.
If you agree, it is fine.
There is nothing to say.
Okay, do the depreciation account immediately.
Do the depreciation account immediately.
Okay, do the depreciation account.
Now, I would like to see whether you can do some leisure
posting or not.
I am just telling you the rhetoric.
Do the depreciation account.
We can make any account by taking it from the entry.
Date.
Particulars.
Amount.
Date.
Particulars.
Amount.
Date.
Particulars.
Amount.
Date.
Particulars.
Amount.
Particulars.
Start.
The same entry as its entry.
The first entry is machinery to bank.
None of that has anything to do with deposit.
The second entry is machinery to bank.
3rd entry depreciation account debit to provision for
deption
In this entry, the debt account is debiting 70,000.
So all the smart kids in the depreciation account will
write the debit side 70,000.
What is the date? 31st December 2023
And what will be the name?
The entry below that, that is to provision for depreciation
account
To provision for depreciation account 70,000 After this,
after this, after this, after this, after this, after this
Next entry, on the same day, 31st December 2023
P&L account debit to depreciation account
What is this entry?
What is happening in this entry to transfer Deption to P&L?
Deption account is getting credited.
From how much money?
From Rs. 70,000.
So, we will come to Deption account.
And we will write the credit side.
How much money?
Rs. 70,000.
What name will we give?
Which is written on Deption there.
Buy P&L account.
31-12-2023 Buy P&L account Rs.
Okay sir. Okay. Okay.
The total here will also be Rs. 70,000.
And the total here will also be Rs. 70,000.
If you have noted one interesting thing, then tell me.
I will give you 10 seconds to think.
If you have noted one interesting thing, then you have to
tell.
10-9-8-7-6-5-4-3-2-1 The interesting thing is that there is
no balance left in this.
In Deption account, yes.
Depreciation is such an account that there will be no
balance left in any year.
Whether you are using Depreciation account through
Provision,
Deption account debit to Provision for Deption.
Whether you are writing Machinery account here.
Provision is not present.
Deption account debit to Machinery.
Even then, there will be no balance left in Depreciation
account.
Why? Whatever Depreciation you debit, for example, here it
is Rs.
Whether you write in Provision or in Machinery, we transfer
it to P&L at the same time.
Rs. 70,000.
At every moment, we transfer Depreciation to P&L account.
Say yes or no.
Yes, sir.
So there will be no closing balance in Depreciation account.
Remember this.
There will be no balance left in Deption account.
Never ever.
As soon as you write Depreciation account in Teleprime, it
will be transferred to P&L.
Okay, sir.
Next entry is related to Depreciation.
P&L to Deption is also done.
Next entry, next entry, next entry.
So there is no problem of writing balance CD in Deption
account.
And there is no problem of making it balance brought down
next year.
Next entry is on 1st July, 2024.
Depreciation account is being debited from Rs. 27,000.
Below it is written 2 Provision for Depreciation.
So here, on 1st July, 2024,
Debit side will come in Depreciation account.
How much?
Rs. 27,000.
In the name of 2 Provision for Depreciation.
2 Provision for Depreciation account.
And friends, write it down.
Here also.
Machinery 1 has Rs. 60,000 and 2 has Rs. 10,000.
And this Rs. 27,000 is on Machinery 1.
Rs. 27,000.
Write it down.
Yes, sir.
We are writing it down.
Next entry is
Profit and Loss Account Debit to Depreciation Account.
Next entry is this.
P&L Account Debit to Depreciation.
We haven't posted it yet.
When we were making Machinery account and Provision for
Depreciation, we didn't post this entry.
Because in this entry, neither Machinery account is being
debited nor credited, nor Provision for Depreciation
account is being debited or credited.
But now, because we are making Depreciation account and in
this entry, Depreciation account is being credited, that's
why it will come in Depreciation account.
Credit side,
Rs. 27,000.
In the name of P&L.
By P&L.
In the name of P&L.
By P&L Account.
Same day.
1st July, 2024.
Same day.
1st July, 2024.
It's 1 o'clock in the night.
Exact 1.
Right? Yes, sir.
We are doing so much work for you.
No doubt.
You have made payment.
We have earned.
No doubt.
We are not denying that.
What I want to say is if you are doing so much work, then
don't you think you should work hard and do revision
properly and take this course in full grip.
Yes, sir.
So friends, revision should run intact.
There should be no problem at all.
In revision, even 1% will not be accepted.
Yes, sir.
If you have any doubt, ask along with it.
It is available for you.
We are not denying that.
According to the timing, whatever is relevant.
Okay? No problem.
Okay, sir.
Next entry.
Provision for Depreciation to Machinery.
This will not be posted.
Because neither is depreciation account getting debited,
nor is it created.
Next entry,
Bank to Machinery.
This will also not be posted in depreciation account.
Next entry,
Loss on Sale of Machinery
Account Debit to Machinery.
This will also not go into depreciation account.
Next entry will go.
Depreciation account debit to provision for depreciation
account.
31st December, 2024
To
Provision for
Depreciation account.
To Provision for
Depreciation account.
Depreciation account to provision for depreciation account
39,000 39,000 39 write how much on 2 19 and 20 on 3 and at
the same time it will be transferred to P&L 31, 12, 24 by
P&L account 39,000 how much will be the total of both sides
49, 49, 69, 69, 66,000 and 66,000 66,000 66,000 write all
dear children write and go we have also made a depreciation
account
I say it as many times as I can, keep on revising
I say it at the end of every class, I will keep saying it
till the end of the course
See you in the next class, thank you, bye bye, take care