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Dr/ Accumulated depreciation with the three years and credit provision for depreciation
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if the amount of depriciation is pervasive to the financial statments the accountant will take its effect retrospectively from the last financial statements as well and Vice Versa.
once accounting year closed we can't do back dated entries any way we can made all 3 previous yrs depriciation we can pass entry current accounting year
company maintain Provision Method dep then entry will be as follows-
Depriciation Dr
(Depriciation provided for 2013/2014 & 2015)
Prov.for Depriciation Cr.
(Accumulated Depr as on 31.12.15)
Above entry Effect on Financial statements
Current year P&L will reduced
when comparative balance sheet made asset value mismatch
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