Calculation of Depreciation if we forgot to record in previous years

Hi All
Hope you are well and safe

I have got confusion regarding calculation of Depreciation if we forgot to calculate in previous years
say for example If we bought a Vehicle on 01/04/2017 for 50,000 calculate depreciation on 20% diminishing method sold Vehicle on 01/04/2020 but forgot to record previous years Depreciations
What will be depreciation and accumulated depreciation amount for Y/E 31.03.2020

Is it 6400 Depreciation and 24400 Accumulated Depreciation or

6400 Depreciation and 6400 Accumulated or

24400 Depreciation and 24400 Accumulated Depreciation

Please Advise

Thank You

Answers

  • Pian32
    Pian32 MAAT Posts: 457
    edited February 15
    Is this in the bookkeeping records or in the accounts?

    If the depreciation was put through the accounts and it was just missed in bookkeeping then it's option 1. If it hasn't gone through the accounts then I think you'll need to make a prior year adjustment for the previous years to add the depreciation back in.
    AAT Level 4, MAAT
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  • keepthebooks
    keepthebooks Registered Posts: 8
    there was not any particular clarification about missed in bookkeeping or account but question was like this

    thank you for your reply
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