DEPRECIATION, , PROVISIONS & RESERVES
HELLO BOY!
TODAY'S CLASS WILL BE HIGHLY ILLUSTRATIVE AND INTERACTIVE.
YOU WILL LEARN THIS TOPIC BY WATCHING VARIOUS SHORT AND
EXPLANATORY VIDEOS.
LET US BEGIN WITH THE CONCEPT OF DEPRECIATION.
WATCH THE VIDEO BELOW BY CLICKING ON THE LINK
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LET US NOW UNDERSTAND THE CAUSES OF DEPRECIATION.
WATCH ANOTHER ILLUSTRATIVE VIDEO BY CLICKING ON THE LINK BELOW:
WATCH ANOTHER ILLUSTRATIVE VIDEO BY CLICKING ON THE LINK BELOW:
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THE FOLLOWING VIDEO WILL LET YOU UNDERSTAND THE RECORDING
OF DEPRECIATION IN THE ASSET AND DEPRECIATION LEDGER ACCOUNTS.
WATCH THE VIDEO BY CLICKING AT THE LINK BELOW:
STRAIGHT LINE METHOD RECORDING OF DEPRECIATION IN ASSET AND DEPRECIATION ACCOUNT.
Recording of Depreciation
Depreciation, being the loss on the value of fixed asset, is considered as an expense for a business. It should be properly recorded in the books of accounts in order to determine the correct figure of profit or loss. There are two methods for recording depreciation in the books. These are:
1. By Charging Depreciation to Asset Account
2. By Creating Provision for Depreciation Account
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2. By Creating Provision for Depreciation Account
SO, NOW THE VIDEO BELOW SHALL EXPLAIN THE RECORDING OF DEPRECIATION
WHEN PROVISION FOR DEPRECIATION ACCOUNT IS MAINTAINED.
CLICK ON THE LINK GIVEN BELOW:
STRAIGHT LINE METHOD : RECORDING OF DEPRECIATION WHEN PROVISION FOR DEPRECIATION ACCOUNT IS MAINTAINED
WHEN PROVISION FOR DEPRECIATION ACCOUNT IS MAINTAINED.
CLICK ON THE LINK GIVEN BELOW:
STRAIGHT LINE METHOD : RECORDING OF DEPRECIATION WHEN PROVISION FOR DEPRECIATION ACCOUNT IS MAINTAINED
TAKING FEW PROBLEMS IN STRAIGHT LINE METHOD OF CHARGING
DEPRECIATION.
WATCH THE TWO VIDEOS SHARED BELOW FOR THE CLARITY OF SOLVING THE
PROBLEMS.
DEPRECIATION.
WATCH THE TWO VIDEOS SHARED BELOW FOR THE CLARITY OF SOLVING THE
PROBLEMS.
2. COMPREHENSIVE PROBLEM IN STRAIGHT LINE METHOD
True and Fair Financial Position- By creating the provisions for anticipated expenses and losses the true financial position of an organisation can be assessed at the end of an accounting period.
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When rate of depreciation is given without the word ‘per annum’
In case the rate of depreciation is given without the word ‘per annum’, then depreciation is charged without considering the time factor. That is, depreciation on asset is charged for the full year irrespective of the date of purchase.
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True and Fair Financial Position- By creating the provisions for anticipated expenses and losses the true financial position of an organisation can be assessed at the end of an accounting period.
NOW LET US BEGIN WITH THE SECOND METHOD OF CHARGING DEPRECIATION:
WRITTEN DOWN VALUE METHOD
WATCH, YET ANOTHER TWO ILLUSTRATIVE VIDEOS TO LEARN TO PREPARE THE
ASSET AND DEPRECIATION ACCOUNT UNDER WDV METHOD
AND TO COMPUTE PROFIT OR LOSS ON THE SALE OF ASSET UNDER THIS METHOD
WRITTEN DOWN VALUE METHOD
WATCH, YET ANOTHER TWO ILLUSTRATIVE VIDEOS TO LEARN TO PREPARE THE
ASSET AND DEPRECIATION ACCOUNT UNDER WDV METHOD
AND TO COMPUTE PROFIT OR LOSS ON THE SALE OF ASSET UNDER THIS METHOD
2. WRITTEN DOWN VALUE METHOD FOR COMPUTATION OF LOSS ON SALE OF ASSET
IT SEEMS THE ABOVE DESCRIPTIVE AND EXPLANATORY VIDEOS MUST HAVE
CLEARED ALL OF YOUR DOUBTS.
LET US FOCUS OUR ATTENTION ON THE PURPOSE OF MAKING RESERVES.
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CLEARED ALL OF YOUR DOUBTS.
LET US FOCUS OUR ATTENTION ON THE PURPOSE OF MAKING RESERVES.
The classification of the reserves is depicted in the given below diagram.
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ON THE TYPES OF RESERVES.
Good morning Mam
ReplyDeleteChaitanya Mittal
GOOD MORNING SIR, KEVIN SUNIL PAPPAN 11B
ReplyDeleteGood morning ma'am maanas Matthew
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