Exclusion of Annuity Method, Sinking Fund Method and Provision

for Repairs from

Chapter 5 of Paper 1: Principles and Practice of Accounting
Foundation Course

It has been observed that ‘Annuity method’, ‘Sinking Fund Method’ and ‘Provision for
Repairs’ given under Chapter 5: ‘Concept and Accounting of Depreciation’ of Study
Material of Paper 1: ‘Principles and Practice of Accounting’ at Foundation level are not
relevant in the current scenario.
Accordingly, students are advised not to read the following paras and
illustrations/questions of the Study Material (for November, 2019 Examination and
onwards):

Sub-topic Para Page Illustration number with page

number number number
Annuity method 3.4 5.12 4 5.12

Sinking Fund 3.5 5.13 5 and 6 Page 5.15 &

Method 5.17

Test your 5.29

knowledge -
Theory question
2(ii)
Provision for 8 5.26 14 5.26
Repairs