Answer Posted / h.r. sreepada bhagi
Depreciation is charged on fixed assets to account the
reduction in their value due to use, passage of time,
obsolescence, etc. Assumption (Fact also) is that after some
years the assets will become useless & they will not be
useful for the business.
Contrary to this land will never cease to exist. it remains
there forever and remain useful. It's value will not
generally come down. Hence it's not depreciated and usually
shown at cost of acquisition. However, if a business wants
to revalue it, it can do so & state it at the market value
as per the provisions of applicable laws.
Remember - Land is an asset with perennial value & its life
is not limited as that of other fixed assets (For which
depreciation is necessary)
| Is This Answer Correct ? | 25 Yes | 3 No |
Post New Answer View All Answers
PRELIMINARY EXPENSES INCURRED IN THE YEAR OCTOBER 2012 MONTH 5LAKS WHICH ACCOUNTED IN ASSET SIDE AS ''PRELIMINARY EXPENSES''... IN YEAR END MARCH 2013, IN 5LAKS HOW MUCH AMOUNT SHOULD TAKE FOR PRELIMINARY EXPENSES WRITTEN OFF..?
how to finalised the Balance sheet & profit & loss A/C
What is dividend warrants?
on 02/05/2013 issued a cheque to third eye ltd of Rs.14000/- in full and final settlement against the due on amount
describe the rule of garner vs murray and how it relates to the dissolution of a partnership
In the balance sheet, where do you show tds?
what is bank aceleted?
what is the process of cenvat credit taken in service tax( in direct & indirect service)
WE PURCHASED ONE ASSET,HOW CAN WE CALCULATE EXCISE DUTY,VAT,SERVICE TAX?[IN CASE OF SELLING PURPOSE OR OWN PURPOSE].SHALL WE CLIME CREDIT ON THAT?THEN HOW?
what is bond wash transaction ,when we have to use it, and what is the procedure please help me with examle
The following information is extracted from the audited books of accounts of a chain of food stores for the period ended 31st December 2015. Revenue Statement (Trading and Profit and Loss Account for the year ended 31st December 2015. BWP’000 BWP’000 Sales 460 Cost of good sold (220) Gross profit 240 Wages 50 Other expenses 30 (80) Net Profit 160 Note: The purchase figure included in the cost of goods sold of P255 000. Balance Sheet as at 31st December 2015 BWP’000 BWP’000 Fixed Assets 400 Current assets: Stock 80 Debtors (trade) 120 Bank 400 ----- [600] Current liabilities: Trade creditors 300 ------ [300] 300 Net Assets 700 ==== Financed by: Share capital 600 Revenue reserves 100 ------ 700 Shareholders Funds 700 ===== Required: (a) Calculate the following accounting ratios: (i) Current ratio (ii) Acid test ratio (iii) Stock turnover (in days) (iv) Debtors turnover (in days) (v) Creditors turnover (in days) (vi) Return on capital employed (ROCE) (vii) Gross profit percentage (viii) Net profit percentage (b). Give a brief comment on the performance of the company, based on the above ratios.
what is the entry of credit card received excess amount entry in tally and their under group names
which subsidiary book is source of these:debit note,credit slip,
why we multiply no. of purchasing year with average profit
in terms of accounting the trial balance when is it taken?
