Answer / harish

Every asset dimnishes its value after its use. so there are
some fixed percentages set up alreay for some type of
asests for depreciation. eg: plant and mach should be dep @
25 % and Land and Buildings should be de @ 10 % etc. Even
though it is an estimate, there should be some
accountability for the depreceiable value so as to arrive
at the accurate value of the asset.

Answer / h.r. sreepada bhagi

Basis of depreciation is fact, i.e. cost of the assets, life
of the assets is estimate (i.e. No. of yrs.an asset can be
used). For financial accounting & tax accounting rates are
specified in the relevant statutory Acts of each country.
For Cost & Management accounting purpose, usually the cost
of the asset as reduced by the estimated reduced value is
divided by estimated output over the lifetime of the asset
or the estimated life of the asset, depending up on the
nature or class of the asset. While charging depreciation to
Profit & Loss A/c it's reasonableness and not accuracy which
is taken in to account.

Answer / maged

We have two methods to make the depreciation:
1- Direct Method:
Dep.=(Cost - Resedual Value) / useful life.
2- Double Declining Method:
Dep.= Book Value * Depreciation percentage
as Book Value =[Cost-Accumulated Dep.]

And note, we have estimations depend on basics.
like; How much this asset will be used and for how long
time and its quality and is it cabable to be used in this
process?

Answer / sameer nirmal

It's very much important to ascertain right value of
assets, depreciation is the value of assets which is used
in making profit. It is one of the kind of loss for the
company or firm.We need not to decide percentage of
depreciation over assets it's already given in Accounting
Standard 6.

why share capital shown in liability side of a balance sheet

17 Answers  

---

Hi Im Arun D. I m short listed for Karnatka bank interview. Can anybody share ur experiences regarding Bank interview of karnatka bank which was held on dec for Clerical post. Please help me I f u can. thanx in advance

0 Answers   Banking,

---

Distinguish value andPrice

0 Answers  

---

i want the steps involved in the customization for the process order. my situations is if i take the process order for x qty then stores people can issue only x qty not less or not more. how to do this. pls help me

0 Answers  

---

what are the different causes for discrepencybetween the balance of cash book and pass book

0 Answers  

---

If grant is receivable by head office, but it is directly received by branch then what entries should be passed in branch and head office in tally

2 Answers  

---

what do mean by drawing?

7 Answers  

---

expand V R D

2 Answers  

---

what is finance tell me in exact definition?

6 Answers   Bank Of America,

---

What is the safety of margin?

4 Answers   Lloyd,

---

What do you mean by Mutual Funds ? Types

5 Answers   BNP Paribas, Capital IQ,

---

fill in the Blanks The minimum amount of remuneration allowable to the working partners is___________

1 Answers  

---