✔ 最佳答案
I think you may have some misunderstanding about method of depreciation and accounting treatment of depreciation. Depreciation account as you said is a profit and loss item, depreciation provision account is a balance sheet item.
As per you example, for straight line method,
the annual depreciation is (112,000-8,000)/5, ie. 20,800,
so the the accounting entries for the 1-3 years are the same,
ie.Dr Depreciation account 20,800
Cr Provision for depreciation account 20,800
for reducing balance method,
the year 1, depreciation is 112,000X40%=44,800,
the accounting entries are
Dr Depreciation account 44,800
Cr Provision for depreciation account 44,800
for year 2, depreciation is (112,000-44,800)X40%=26,880
the accounting entries are
Dr Depreciation account 26,880
Cr Provision for depreciation account 26,880
for year 3, depreciation is (112,000-44,800-26,880)X40%=16,128
the accounting entries are
Dr Depreciation account 16,128
Cr Provision for depreciation account 16,128