Give the journal entry for the sinking fund deprecation method.

Banking & FinanceFinance ManagementGrowth & Empowerment

                    Journal entry

DateParticularsDrCr
XX/XX/XXXXDepreciation A/c
To sinking fund A/c
(Being depreciation is transferred to sinking fund account)
XXXXXX
XX/XX/XXXXProfit and Loss A/c
To Depreciation A/c
(Being depreciation is charged to profit and loss account)
XXXXXX
XX/XX/XXXXSinking fund investment A/c
To Bank A/c
(Being amount of depreciation invested)
XXXXXX
XX/XX/XXXXBank A/c
To interest on sinking fund investment A/c
(Being interest earned on sinking fund investment)
XXXXXX
XX/XX/XXXXBank A/c
To sinking fund investment A/c
(Being sinking fund investment sold at the end of asset life)
XXXXXX
XX/XX/XXXXSinking fund investment A/c
To sinking fund A/c
(Being profit on sale of investment transferred to sinking fund)
XXXXXX
XX/XX/XXXXSinking fund A/c
To sinking fund investment A/c
(Being loss on sale of investment transferred to sinking fund)
XXXXXX
XX/XX/XXXXSinking fund A/c
To sinking fund investment A/c
(Being loss on sale of investment transferred to sinking fund)
XXXXXX
XX/XX/XXXXSinking fund A/c
To asset A/c
(Being the book value of asset transferred to the sinking fund)
XXXXXX
XX/XX/XXXXSinking fund A/c
To General Reserve A/c
(Being surplus in sinking fund transferred to the General reserve)
XXXXXX
XX/XX/XXXXProfit and loss A/c
To sinking fund A/c
(Being deficit in sinking fund transferred to profit and loss A/c)
XXXXXX
raja
Published on 26-Sep-2020 13:50:58
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