Fixed Asset Capitalized Twice.

[bilalfca]

well if u have capitalized a Fixed Asset (FA) twice, its an error with prospective application and u would have to adjust it by passing following entries

1. Cash/ Bank/ Payables... Debit (with the amountwrongly Credited)
FA.... Credit (amount with which it is capitalizedwrongly)


If depr. is charged

2. Accumulated Depr.. Debit (Total Depr. that has been charged to PLS)
Depr.......... Credit (Current year Depr. expense)
Net Profit.... Credit ( Balancing figure)

Retained Earnings (Accumulated Profits) will be increased because Depr(expense) has lowered the Net Profit in the years(s) depr. is/has been charged

3. Net Profit...................Debit
Retained Earnings................. Credit
(Adjusted Profit transferred to retained earnings)

thats all... (according to my understanding)