Class name Subject Book title Chapter number Content Created at
Class XI Accountancy Financial Accounting-I 6 Book as ` 6,000 and posted there from to R & Co. as ` 1,000. (d) Credit sales to Mohan ` 5,000 were recorded in Purchases Book. (e) Goods returned ...
Class XI Accountancy Financial Accounting-I 6 Sales A/c 15,000 4. Cash A/c Dr. 6, 000 To Nadeem’s A/c 6,000 Cash A/c Dr. 6,000 To Karim’s A/c 6,000 Test Your Understanding - III 1. Error of Com...
Class XI Accountancy Financial Accounting-I 7 226 Accountancy Depreciation, Provisions and Reserves 7 atching principle requires that the revenue of M a given period is matched against the expe...
Class XI Accountancy Financial Accounting-I 7 year. Fixed assets (technically referred to as “depreciable assets”) tend to reduce their value once they are put to use. In general, the term “Dep...
Class XI Accountancy Financial Accounting-I 7 cost or loss in the value of machine on account of its use or passage of time and is referred to as ‘Depreciation’. The amount of depreciation, bei...
Class XI Accountancy Financial Accounting-I 7 of depreciation, or its base, are ‘depreciable’ assets which. • “are expected to be used during more than one accounting period. • have a limited u...
Class XI Accountancy Financial Accounting-I 7 purposes and not for the purpose of sale in the ordinary course of business.” Reprint 2026-27 Depreciation, Provisions and Reserves 229 Examples of...
Class XI Accountancy Financial Accounting-I 7 and identify at least five depreciable assets in your home, school, hospital, printing press and in a bakery. Reprint 2026-27 230 Accountancy 7.2 D...
Class XI Accountancy Financial Accounting-I 7 been very clearly spelt out as part of the definition of depreciation in the Accounting Standard 6 and are being elaborated here. 7.3.1 Wear and Te...
Class XI Accountancy Financial Accounting-I 7 fetch the same price in the market even if it has not been used. 7.4 Need for Depreciation The need for providing depreciation in accounting record...
Class XI Accountancy Financial Accounting-I 7 main cause of depreciation is wear and tear caused by its usage. 5. Depreciation must be charged so as to ascertain true profit or loss of the busi...
Class XI Accountancy Financial Accounting-I 7 salvage value for accounting purpose) is the estimated net realisable value (or sale value) of the asset at the end of its useful life. The net res...
Class XI Accountancy Financial Accounting-I 7 used for production profitably, i.e., if it is still used the cost of production may be very high. Therefore, the useful life of the machine is con...
Class XI Accountancy Financial Accounting-I 7 appropriate method depends upon the following : • Type of the asset; • Nature of the use of such asset; • Circumstances prevailing in the business;...
Class XI Accountancy Financial Accounting-I 7 is calculated as follows: Rate of Depreciation =Annual depreciation amount ×100 Acquisition cost Consider the following example, the original cost ...
Class XI Accountancy Financial Accounting-I 7 of the asset decreases and repair and maintenance expense increases. Hence, under this method, the total amount charged against profit on account o...
Class XI Accountancy Financial Accounting-I 7 7.2). This is due to the reason that a predetermined percentage is applied to a gradually shrinking balance on the asset account every year. Thus, ...
Class XI Accountancy Financial Accounting-I 7 at fixed percentage of written down value, depreciable cost of the asset cannot be fully written-off. The value of the asset can never be zero; • I...
Class XI Accountancy Financial Accounting-I 7 and repair charge remains similar or equal year after year. 7.7.4 Recognition by Income Tax Law Straight line method is not recognised by Income Ta...
Class XI Accountancy Financial Accounting-I 7 purchase) Asset A/c Dr. (with the cost of asset including installation, expenses etc.) To Bank/Vendor A/c (cash/credit purchase) 2. Following two j...
Class XI Accountancy Financial Accounting-I 7 asset) Mar. 31 Profit and Loss A/c Dr. 54,000 To Depreciation A/c 54,000 (Depreciation debited to profit and loss account) Plant Account Dr. Cr. Da...
Class XI Accountancy Financial Accounting-I 7 To Bank A/c 20,000 (Expenses incurred on installation) Reprint 2026-27 244 Accountancy Mar. 31 Depreciation A/c Dr. 10,000 To Machine A/c 10,000 De...
Class XI Accountancy Financial Accounting-I 7 as acquisition date is October 01, 2016, i.e., the asset is used only for 6 months during the year 2016-17. (4) Depreciation (2016-17) = `20,000 x ...
Class XI Accountancy Financial Accounting-I 7 three years. Books are closed on March 31, every year. Solution Books of Dalmia Textiles mills Machinery Account Dr. Cr. Date Particulars J.F. Amou...
Class XI Accountancy Financial Accounting-I 7 2016 35,000 73,250 (–) Depreciation for the year 2015-2016 (20% of 38,250 + 20% of ` 35,000 for 3 month) (9,400)2 WDV on Mar. 31, 2016 63,850 (–) D...