|
Depreciation is a permanent, gradual and continuous reduction in the book value of the fixed asset. causes of Depreciation….
|
|
According to the matching principle of accounting, the costs incurred in the accounting year should be matched with the revenue…
|
|
Depreciation forms a part of cost which is used for arriving at correct estimation of profits, which then is distributed to the owners…
|
|
Methods for calculating depreciation are: Straight Line Method….
|
|
It is the simplest and most often used technique. The components used to calculate Straight Line Method are:…
|
|
In Written Down Value Method, the rate of depreciation is predetermined. This is done by deducting the amount of depreciation charged before….Formula to calculate:…
|
|
Production Unit Method is also a method of calculating depreciation. According to this method...Formula to calculate..
|
|
In this method, the purchase of an asset is considered an investment of capital on which a certain rate of interest is earned…
|
|
It is also known as Depreciation fund method. Under this method a sinking fund or depreciation fund is created…
|
|
Under this method the fixed assets are valued at the end of each accounting period. The difference between….Formula for Calculating…
|
|
Depreciation calculation mehtod used to calculate the tax liability…
|
|
As per Schedule XIV of Companies Act, 1956 the company can calculate the depreciation…
|
|
To calculate depreciation as per Schedule XIV of Companies Act, 1956 the fixed assets are categorized as below:…
|
|
Under the Companies Act: Depreciation is computed either using the straight line method or written down value method…
|
