The following methods may be employed for calculating depreciation of an asset: 1. Straight Line Method 2. Reducing Balance Methods 3. Production Based Methods 4. Repair Provision Method 5. Annuity Method 6. Sinking Fund Method 7. Endowment (Insurance) Policy Method 8. Revaluation Method 9. Sum of the Digits Method. 1. Straight Line Method: This method provides for depreciation by means [...]
After reading this essay you will learn about:- 1. Introduction and Necessity of Book-Keeping 2. Definition and Systems of Book-Keeping 3. The Journal and the Ledger 4. Trial Balance 5. Trading Account 6. Financial Statement. Contents: Essay on the Introduction and Necessity of Book-Keeping Essay on the Definition and Systems of Book-Keeping Essay on the The Journal and the Ledger [...]
After reading this article you will learn about the treatment of reserve and surplus. Treatment of Reserve: Setting up of reserves for working capital are very necessary for sound financial administration in order: i. To cover credit losses; ii. To liquidate debts; iii. To offset price fluctuations on inventories; iv. To provide for improvement and expansion; v. For depreciation and [...]