ACCOUNTANCY TOPIC :- DEPRECIATION.

Slides:
Advertisements
Similar presentations
Cost Behavior and Cost-Volume-Profit Analysis
Advertisements
Deprecation.
8.4 Depreciation. What is Depreciation? Decreasing the value of a fixed asset over its useful life.
The original amount of fixed asset consumed during its period of use It is an expense for services rendered by the fixed asset.
Accounting Standard - 6 DEPRECIATION. Table of Content Objective Definition Treatment Method Live Example Industry Practice.
Depriciation Depriciation is a gradual and permanent decrease in the value of assets from any cause. (R.N.Carter) Depriciation may be defined as permanent.
ACT 110 Is EASY POP! Our Confession Because, I am Going to get an “A”!
Depreciation Accounting
Chapter 26 Depreciation of non-current assets: nature and calculations
Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?
DEPRECIATION POLICY.
Economics of Power Generation Lecture 6. “”The art of determining the per unit (i.e., one kWh) cost of production of electrical energy is known as economics.
Chapter 9 – Completing the Accounting Cycle
Assume the Position. ACT 1100 Introduction to Accounting Lecturer: Troy J. Wishart Summer Course.
1 Chapter 11 Depreciation Depreciations: Straight Line Sum of Years Digits Declining Balance.
Depreciation Depreciation – the reduction in value of an asset. Used to reflect remaining value of an asset over its useful life. Book Depreciation – used.
Estimation of Free Cash flow to share owners (FKFA) and Free Cash flow to the firm (FKFF) -use of the indirect method – starts with the annual profit FKFA.
Benefits, costs and income statement. Expenses x costs Costs – financila accounting: Amount of money which the enterprise used to get benefits. General.
Depreciation of Fixed Assets Prepared by Lucky Yona.
Chapter 8 – Completing the Accounting Cycle
Recap Disposal of fixed assets Policies for fixed assets
DETERMINING CASH FLOWS FOR INVESTMENT ANALYSIS
Depreciation & Inventory Management Accounting - Dr. Varadraj Bapat, IIT Mumbai 1.
PRODUCTION AND ESTIMATION CHAPTER # 4. Introduction Production is the name given to that transformation of factors into goods. Production refers
to.
Capital & Capital Budgeting
Engineering Economy IEN255 Chapter 7 - Depreciation fig 7.1.
Operating Leverage Uses of Operating Leverage
06/10/2015DEPRECIATION,PROVISIONS AND RESERVES1.
10/18/ Created by Rajat. To prescribe the accounting treatment for the fixed assets. The major issues covered are : * The timing of Recognition.
CE Estimation & Quantity Surveying UNIT – IV VALUATION Prepared by Prof. S.L. DAVID ANANDARAJ.
POWER POINT LESSON S S 3 ECONOMICS NATIONAL INCOME. NATIONAL INCOME CAN BE DEFINED AS THE TOTAL MONETARY VALUE OF GOODS AND
SERVICES PRODUCED IN A GIVEN.
DEPRICIATION CONTENTS WHAT IS DEPRICIATION WHY WE PROVIDE DEPRICIATION CAUSES OF DEPRICIATION FACTORS INFLUENCING THE
DEPRICIATION METHODS FOR.
AS-6 DEPRECIATION ACCOUNTING JONLEN J.R. DESA M.COM 1 R/M.COM
Do Now According to some reports, supermarkets make a profit of three to six cents for every dollar of revenue. Where does the rest of the money go????
Depreciation of Assets. Depreciation – The systematic allocation of the cost of an asset over its useful life is called depreciation. For example, the.
AGEC 407 Record Keeping Why is record keeping important? –Measure profit and assess financial condition –Provide historical data for business analysis.
By Muhammad Shahid Iqbal
Deprecition.
replacement cost or replacement value refers to the amount that an entity would have to pay to replace an asset at the present time, according to its.
PRESENTATION CH# 4 Economics Of Power System GROUP MEMBER:. KASHIF ISHTIAQ (BSEE ). RANA MASHOOD.
DEPRECIATION ACCOUNTING Depreciation is an expenses and not a loss Depreciation is reduction in the value of fixed assets due to use, wear and tear,
obsolescence.
1. 2 Engineering Economics (2+0) Depreciation of Assets Prof. Dr. Attaullah Shah Lecture # 6 Department of Civil Engineering City University of Science.
Financial Accounting 1 Lecture – 18 Depreciation “It is a systematic allocation of the cost of a depreciable asset to expense over its useful life”.
Financial Accounting 1 Lecture – 19 Recap Disposal of fixed assets Policies for fixed assets Journal entries In case of straight line method Written down.
In order to produce a good, every firms uses various inputs. The amount spent on these inputs is called cost of production. These factors are to be.
Depreciation. Nature of Depreciation Fixed Assets for a business are expected to be used up in the course of time. Thus depreciating in value.depreciating.
Cost & Management Accounting Lecturer-45. RA & RB Company owns a department store. It sells three major lines of their products in three departments.
Cash Flows in Capital Budgeting
Welcome To A Session On Annuity ©. S. B. Bhattacharjee.
Contemporary Engineering Economics
QMT 3301 BUSINESS MATHEMATICS
Long-term Assets
Fixed Assets Fixed assets are those assets: that have a long life,
Plant assets and depreciation
Chapter 3 Part 2.
Understanding Accounting and Financial Information
DEPRECIATION.
Depreciation, Provision & Reserves.
Chapter 11 Depreciation Depreciations: Straight Line
Fixed Assets and Depreciation
Trial Balance As On January 31, 20--
LESSON 8-4 Other Methods of Depreciation
Chapter 23 Income Statements
Chapter Five Appendix DEPRECIATION METHODS.
Test Tomorrow Have you got your assignments turned in?
Straight-Line Depreciation
2nd Year Business Studies
Depreciation of Fixed Assets
DECLINING-BALANCE METHOD OF DEPRECIATION
Takshila Learning Learn anything anywhere www. takshilalearning
Presentation transcript:
ACCOUNTANCY TOPIC :- DEPRECIATION

DEPRECIATION Depreciation is a combination of two words ‘De’ & ‘Preciation’. ‘De’ means decrease & ‘Preciation’ means Price. Therefore Depreciation means decrease in the
value of fixed Assets due to its constant use.

DEFINITIONS According to R.N. Carter, “Depreciation is gradual and permanent decrease in the value of an asset from any cause.” In the words of W.Pickles, “Depreciation may be
defined as permanent & continuous decrease in the quality, quantity or the value of an assets.”

CAUSE OF DEPRECIATION

NEED FOR DEPRECIATION For determining Net Profit or Net Loss. For showing true value of assets. Provision of funds for replacement of assets. Ascertaining accurate cost of
production. Distribution of dividend out of profit only. Avoiding over payment of Income Tax.

METHODS OF CALCULATING DEPRECIATION

FIXED INSTALMENT METHOD It is the simplest method of charging depreciation. In this method the value of asset is divided by the estimated life period of the assets. Suppose the
value of an assets is Rs 2,00,000 & its estimated life is 10 years, in this case the depreciation is 20,000.

FIXED INSTALMENT METHOD This method is also known as straight line method, Original Cost Method and Equal Installment method The formula of this method is as under
Depreciation= Cost of asset – Scrape Value Estimated life of assets

WRITTEN DOWN VALUE Under this method, the value of asset upon which depreciation is to be calculated is goes on diminishing, so the amount of depreciation to be charged every
year also goes on declining. Suppose the value of an asset is Rs 2,00,000 & its rate of depreciation is 10% p.a. The value of depreciation during 1st year is Rs 20,000 & 2nd year is Rs
18,000.

HOME ASSIGNMENT What do you mean by Depreciation? Briefly describe the various causes of Depreciation? Why is it necessary for a firm to charge Depreciation? What do you
mean by Straight Line Method? Define W.D.V. method?

THANK YOU
Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2023 SlidePlayer.com Inc. All rights reserved.

PDFmyURL.com - convert URLs, web pages or even full websites to PDF online. Easy API for developers!