Basics 6 min read
Depreciation Fund Method
Business assets become useless at the expiry of their life and therefore, need replacement. However, all the methods of depreciation…
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Author: Boomi Nathan.
J. BoomiNathan is a writer at SenseCentral who specializes in making tech easy to understand. He covers mobile apps, software, troubleshooting, and step-by-step tutorials designed for real people—not just experts. His articles blend clear explanations with practical tips so readers can solve problems faster and make smarter digital choices. He enjoys breaking down complicated tools into simple, usable steps.
Basics 2 min read
Annuity Method
Sofar we have described such methods of charging depreciation which ignore the interest factor. Also, sometimes it becomes inconvenient for…
Basics 5 min read
Methods Of Calculating Depreciation
The following are various methods of depreciation in use: 1. Fixed instalment method or straight-line method. 2. Machine hour rate…
Basics 3 min read
Causes Of Depreciation
The depreciation occurs because of the following: 1. Constant use: The constant use of assets results into their wear and…
Basics 4 min read
Accounting For Depreciation
Introduction The term depreciation refers to the reduction in or loss of quality or value of a fixed asset through…
Basics 3 min read
Valuation Of Inventory For Balance Sheet Purpose
In certain cases, it is not possible for the business to take inventory on the date of balance sheet. It…
Basics 8 min read
Methods Of Valuation Of Inventories
The basic methods of valuation of inventories are as follows: (a) Historical cost-based method (b) Sale price-based method (c) Lower…
Basics 4 min read
Inventory Valuation Methods
Introduction The literary meaning of the word inventory is stock of goods. To the finance manager, inventory connotes the value…
Basics 3 min read
Conversion Method
We have seen under the net worth method in the preceding explanation that the method does not give details of…
Basics 5 min read
Calculation Of Profit Or Loss
In case of a business maintaining accounts according to single entry system, profit (or loss) made during the year are…
Basics 4 min read
Single Entry System
Introduction Single Entry System is an incomplete ‘double entry system’. In case of double entry system of book- keeping both…
Basics 8 min read
Reconciliation Of Bank Accounts
Introduction In modern business world, the major part of the business transactions is settled by cheques. For the purpose of…