How to Posting Entry of Depreciation in Tally

Prepare the Depreciation Account  from the following information given below.

Depreciation to be charge 10% p.a.

1-4-2010   Introduced capital in the Business Rs.50, 00,000.

1-4-2010   Amount deposited into HDFC Bank A/c Rs.20, 00,000.

1-4-2010   Machinery No. I purchased through cheque Rs.10, 00,000

1-12-2010 Machinery No.II purchased through cash Rs.20, 00,000

1-10-2011    Machinery No. I sold for Rs.7, 20,000

31-3-2012    Received Bank interest rs.20000

Creation of Depreciation

Create a New Company (It is not compulasary)

Financial Year From: - 1-4-2010  

Books Beginning From: - 1-4-2010  

Note: - In case of Depreciation Date Is most important to change.

Receipt F6

1-4-2010   Cr. Capital A/c.............. 50, 00,000

                   Dr. Cash A/c ................ 50, 00,000

Contra F4

1-4-2010 Cr. Cash A/c................20,00,000

                 Dr. HDFC Bank A/c.................... 20,00,000

Payment F5

1-4-2010   Dr. Machinery No. I A/c............10,00,000

                   Cr. HDFC Bank A/c .........................10, 00,000

Payment F5

1-12-2010 Dr. Machinery No. I A/c...............20,00,000

                   Cr. Cash A/c........................... 20, 00,000

Charging Depreciation for First year end (last Financial Year date 31-3-2011)

Journal F7

First Change Date then post the Deprecation Entry (Press F2)

31-3-2011 Dr. Depreciation A/c..............166667

                   Cr. Machinery No. I A/c..........................1,00,000

                   Cr. Machinery No. II A/c...........................66667 (Only 4 Month Depreciation charge because Machinery No. II purchase date is 1-12-2010)

Copy First year Balance sheet & P/L A/c

First Year Complete

Second year Start

First Change the Period (Press ALT + F2)

Then start entry post

1-10-2011    Machinery No. I sold for Rs.7, 20,000

Journal F7

Change Date (Press F2)

Charging Depreciation Machinery No. I for 6 Month

1-10-2011    Dr. Depreciation A/c........Rs.45,000

                      Cr.  Machinery No. I A/c.............Rs.45,000

Press F12 Allow Cash Account in Journal –Yes

Sold Machinery No. I (Journal F7)

1-10-2011 Dr. Cash A/c...........................Rs.7,20,000

                   Dr. Profit & Loss A/c.................Rs.1,35,000

                   Cr. Sold Machinery No. I A/c.....................................Rs.8,55,000

Receipt F6

Change Date (Press F2)

31-3-2012 Cr. HDFC Bank A/c................Rs.20,000

                   Dr. Interest Received A/c.........................Rs.20,000

Charging Depreciation Remaining Machinery for the Every Year End

Journal F7

Change Date (Press F2)

31-3-2012 Dr. Depreciation A/c.....................Rs.1,93,333

                   Cr. Machinery No. II A/c........................Rs.1,93,333

Note: - Depreciation Charge only remaining Value of Machinery after charging depreciation.

Some Journal Entry

1. Received on investment Rs.5000.

Cash A/c........................Dr.

    To Dividend A/c...........................Cr.

2. Investment purchased through cheque of SBI Rs.15000.

Investment A/c .........................Dr.

   To SBI Bank A/c..................................Cr.

3. Rent paid Rs.500 due but not yet paid Rs.1000.

Rent A/c.....................Dr. Rs.500

   To cash A/c...........Cr.Rs.500

Rent A/c................................Dr. Rs.1000

   To Out Standing Rent A/c...............Cr.Rs.1000