Please Explain the following Depreciation Methods?
1.stright line method
2.reducing method
3.annuti Method
4.funds Method
5.insurance Method
Answer Posted / guest
Straight line method: This method assume equal amount of
depn over an assets useful life. This translates to equal
depn expenses amount every period.
Reducing method: The reducing balance method of depreciation
provides a high annual depreciation charge in the early
years of an asset's life but the annual depreciation charge
reduces progressively as the asset ages.
To achieve this pattern of depreciation, a fixed annual
depreciation percentage is applied to the written-down value
of the asset. Thus, depreciation is calculated as a
percentage of the reducing balance.
Annuti method: A method of depreciation under which the
depreciation expense is an amount of an Annuity so that the
amount of the annuity at the end of the useful life would
equal the Acquisition Cost of the asset
fund method:the depreciation charge should include interest
on accumulated depreciation at the beginning of the period.
This method is rarely used in practice.
insurance method:
Is This Answer Correct ? | 1 Yes | 0 No |
Post New Answer View All Answers
What is Provision Entry
Explain the Realisation concept and Accounting concept? why do you prepare p/l appropriation account? 4 difference b/w public and private caompany? How do you calculated closing stock in tradind a/c? Contents an invoice receipt? classification of Error as per accounting? Diff btwn Satutory audit & Internal audit? Diff b/w reserves for bad debts and provision for bad debts? Where the Bank book and the Cash book will not reconcile? When will the Cash book have a credit balance?
what is the entry to be made for vat when any purchase is made in that bill vat amount is included ?
BRIEF IN DETAIL REGARDING RATIOS
Assigning natural account to accounting seg. What will happen
What are time sheets?
What is a trial balance in accounting?
Explain the accounts payable cycle
Why in KE5Z report in SAP Accounting Data not found?
i had taken one year gap in completing my graduation bcom should it be considered as backlogs i dont have any kt or anything else i have passed all exam in one trial
Explain what is liabilities and what all does include in current liabilities?
A factory uses annually 24,000 units of a raw material which costs Rs. 1.25 per unit. Placing each order costs Rs. 25 and carrying cost is 6% per year of the average inventory. (a) Find the economic order quantity and the total inventory cost including the cost of material.
Are you comfortable with cold-calling?
Why some asset accounts have a credit balance?
When we paid TDS on commission how will journal entry come