Depreciation accumulated on a separate account

1. DEPRECIATION
ACCUMULATED ON A
SEPARATE A/C
Under this method, the asset is shown at its original cost over the successive years of
its useful life. Depreciation is accumulated called provision of depreciated account or
accumulated depreciation method this method is more useful in that it gaves the original
cost of the asset year after year and depreciation accumulated till date. On the date of
sale of asset, the accumulated depreciation on that asset should be transformed to
asset a/c
For recording depreciation in every year: Depreciation A/c dr
Provision for depreciation A/c
Transfer of depreciation profit&loss a/c: profit&loss A/c dr
Depreciation a/c
Transfer of provision for depreciation a/c respective asset on the date of sale of asset:
Provision for depreciation A/c dr
Asset a/c