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what is depreciation? what are depreciation methods?
please explain those method? can any one reply urgently?
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Answer Posted / vinitha.t
Depreciating/reducing the value of the fixed assets to know
the current value of the assets. All assets are depreciated
except land&building because its value goes on increasing.
Types of depreciation
written down value method-It is depreciated by taking book
value of the assets with a percentage of a depreciation.
straight line method-It is depreciated by taking the
purchase value of the assets.
annuity method
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ABC LTD IMPORTED GOODS FROM USA FOR $20000 ON 1/1/11 AT A EXCHANGE RATE OF RS.47.55. THEY MADE A PAYMENT OF $12000 ON 15/1/11 AT A RATE OF RS.45.95. BALANCE PAYMENT WAS MADE ON 25/1/11 AT A RATE OF RS.49.10
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