Basics
Annuity Method
Sofar we have described such methods of charging depreciation which ignore the interest factor. Also, sometimes it becomes…
August 16, 2021 · Boomi NathanBasics
Basics
Methods Of Calculating Depreciation
The following are various methods of depreciation in use: 1. Fixed instalment method or straight-line method. 2. Machine…
August 16, 2021 · Boomi NathanBasics
Causes Of Depreciation
The depreciation occurs because of the following: 1. Constant use: The constant use of assets results into their…
August 16, 2021 · Boomi NathanBasics
Accounting For Depreciation
Introduction The term depreciation refers to the reduction in or loss of quality or value of a fixed…
August 16, 2021 · Boomi NathanBasics
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…
August 16, 2021 · Boomi NathanBasics
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…
August 16, 2021 · Boomi NathanBasics
Inventory Valuation Methods
Introduction The literary meaning of the word inventory is stock of goods. To the finance manager, inventory connotes…
August 16, 2021 · Boomi NathanBasics
Conversion Method
We have seen under the net worth method in the preceding explanation that the method does not give…
August 16, 2021 · Boomi NathanBasics
Calculation Of Profit Or Loss
In case of a business maintaining accounts according to single entry system, profit (or loss) made during the…
August 16, 2021 · Boomi NathanBasics
Single Entry System
Introduction Single Entry System is an incomplete ‘double entry system’. In case of double entry system of book-…
August 16, 2021 · Boomi Nathan