extended trial balance quirie?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
When entering a provision for depreciation balance in to the credit side of the trial balance, what, if any, is the debit entry for the trial balance? I cannot get it to balance!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:extended trial balance quirie?

    Debit the P&L A/C with the depreciation charge/provision, credit fixed assets.

    Have a go.

    Sharon
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:extended trial balance quirie?

    Thanks. But I have never seen the p & l account balance expressed on a trial balance. For example: I have £2400 depreciation on a van on the credit side of the trial balance, would i then put £2400 on the debit side of the trial balance under P & L account?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:extended trial balance quirie?

    Not necessarily!

    The profit and loss account holds the depreciation for the year but the balance sheet (accumulated depreciation) holds the depreciations thus far.

    If it is the first year of trading the same figures will appear in both.

    Please ask if you want more explanations.

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:extended trial balance quirie?

    Thank you. To clarify: on the first year end trial balance, provision for depreciation would appear in the credit side and the same amount would appear on the debit side as depreciation expense (as there has been no culmalative depreciation, as only one year trading has taken place).
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:extended trial balance quirie?

    so this year you just add up the new Depreciation figures on provision for depreciation A/C in CR side and only this year Depreciation figures go on DR side of the Depreciation Exp A/C on your TB
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:extended trial balance quirie?

    Thanks everyone, I think im sorted now.

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