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What do you mean by depreciation?
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Answer / amit
depreciation is the loss in the value of assets due to wear
& tear & obsolence,like change in the technology.
| Is This Answer Correct ? | 21 Yes | 1 No |
Answer / rabindra kumar mallick
Depreciation means permanent, continuing & gradual
decreasing value of a fixed asset.
| Is This Answer Correct ? | 11 Yes | 0 No |
Answer / mohammed irfan khan
Depreciation is the decrease in the value of fixed asset
due to wear and tear(usage),obsolence etc.
the important point to note is deprecation is for fixed
assets only
| Is This Answer Correct ? | 9 Yes | 3 No |
Answer / amit pandey
depreciation is the lose of value of assets due use of
assets. it is help to calculate net profit of biseness.
| Is This Answer Correct ? | 6 Yes | 1 No |
Answer / shahid raza, pgdm,l.b.s,g.noid
When we use any fixed assets, what ever faal accures in the utility or value of that fixed assets, that is called depreciation for that assets.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / seetu
Depreciation refers to two very different but related
concepts:
decline in value of assets, and
allocation of the cost of tangible assets to periods in
which the assets are used.
The former affects values of businesses and entities. The
latter affects net income. Generally the cost is allocated,
as depreciation expense, among the periods in which the
asset is expected to be used. Such expense is recognized by
businesses for financial reporting and tax purposes.
Methods of computing depreciation may vary by asset for the
same business. Methods and lives may be specified in
accounting and/or tax rules in a country. Several standard
methods of computing depreciation expense may be used,
including fixed percentage, straight line, and declining
balance methods. Depreciation expense generally begins when
the asset is placed in service. Example: a depreciation
expense of 100 per year for 5 years may be recognized for
an asset costing 500
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / deepika
Distribution of the value of an assets over its useful life.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / soumya ranjan barik cma
DEPRECIATION is gradual decreasing in the value of fixed assets due to wear and tear or Obsolences.
| Is This Answer Correct ? | 0 Yes | 0 No |
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Trial balance as on 31st March, 2014 Particulars Debit Pula Particulars Credit Pula Wages 14 100 Dividends received 4 300 Salaries 13 000 Bank overdraft 41 000 Opening Stock 40 000 Returns 1 000 Machinery 49 000 Creditors 14 200 Investments 30 700 Sales 258 500 Drawings 23 000 Capital 30 000 Purchases 130 000 Returns 2 000 Debtors 18 000 Advertising 13 400 Interest 4 800 Cash 11 000 349 000 ======= 349 000 ======== Additional information: 1. Closing stock is valued at P53 000. 2. Wages include P350 being advance against wages. 3. Wages include P1 000 paid for erection of machinery. 4. A purchase of stationery for P430 has been inadvertently included in the Purchases account. 5. A sale of investments with a book value of P2 600 for P2 500 has been included in the Sales Account. 6. Salaries include P150 per month paid to the proprietor’s domestic servant. 7. Machinery is to be depreciated by 10 per cent. Required: a. The revenue statement (Trading and Profit and Loss Account) for the year ended 31st March 2014 and b. Statement of financial position (Balance Sheet) as on 31st March, 2014.
Audit 
