Describe annuity method of calculating depreciation
Briefly describe annuity method of calculating depreciation?
Expert
Under this method, the purchase of an asset is considered an investment of capital on that an assured rate of interest is earned. Cost of the asset and the interest are written down annually by equivalent installments till the book value of the asset is decreased to zero. The annual charge by method of depreciation is found out from the allowance tables. The annual charge for depreciation will be credited to asset account as well as debited to depreciation account while the interest will be debited to asset account and credited to interest account. The drawback of this method is that it is a problematical method to accusation depreciation. Secondly, the yoke on Profit and Loss account goes on rising with the passageway of time and the amount of interest goes on losing ground as years pass by. Therefore this method is best suited to those assets that need considerable investment and do not necessitate repeated additions.
Give brief introduction of Emerson's Efficiency Bonus System of premium payment?
Write down the provisions of purchase back of shares as said by Companies Act, 1956?
What are the points while choosing your university?
Write down the attributes of Government securities market?
Give a brief introduction of the term ‘ABC Analysis’ and also write down is merits?
Define the term reconciliation statement and investment banking?
In what manner Revenue Expenditure affect the profitability statement in a period?
Explain the term system user account in brief?
Write down the various kinds of Equity Market?
The concept of marginal costing practically applied?
18,76,764
1930164 Asked
3,689
Active Tutors
1426138
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!