Depreciation on Assets Depreciation on Assets in general, tangible assets can be depreciated. Tangible assets are physical assets that have a determinable useful life, meaning they are expected to provide economic benefits over a specific period. Common examples of tangible assets that can be depreciated include: 1.Buildings: This includes commercial buildings, residential properties, warehouses,… Read More »
Recording Assets at Original Value Recording Assets at Original Value, When assets are record at their original value, it means that their initial cost or acquisition cost is use as the basis for their recognition on the balance sheet. The original value typically represents the amount paid or incurred to acquire or produce the… Read More »
Asset depreciation: Yes, assets can be depreciated. Depreciation serves as an accounting technique employed to distribute the cost of an asset throughout its useful lifespan. It signifies the gradual decline in the worth of an asset caused by factors such as wear and tear, obsolescence, or other relevant elements. Depreciation typically apply on tangible assets… Read More »
Fixed Asset Depreciation charge on a fixed asset when it is put to use, and not when it is ready for use. Depreciation is a method of allocating the cost of a it over its useful life, and it begins when the asset is available for use in the business. The asset is considered to… Read More »
Is Depreciation an Asset or a Liability There is perfect answer of Is Depreciation an Asset or a Liability question: Depreciation is neither an assets nor a liability. It is a non-cash expense that represents the decrease in the value of a fixed asset over its useful life. It is recorded as an expense… Read More »
Is depreciation the loss of the value of fixed assets Depreciation loss value of fixed assets refers to the process of distributing the cost of a fixed asset over its useful life. It is not technically a loss of value, but rather an accounting method to allocate the cost of an asset over the period… Read More »
Is depreciation a current liabilities No, Depreciation is a technique in accounting that spreads the cost of a tangible asset across its useful lifespan. It represents the wear and tear, usage, or obsolescence of the asset over time. For more information to visit: https://www.incometax.gov.in Here are the key points to understand about depreciation and its… Read More »
How do I calculate the interest on GST liability The interest on GST liability is calculated at a specific rate on the amount of tax liability that is overdue or unpaid for a particular period. The interest rate is currently set at 18% per annum and is calculated on a monthly basis. To calculate the… Read More »
Accounting treatment of an asset When an asset has been fully depreciated but is still in use, it should be recorded on the balance sheet at its net book value, which is the original cost of the asset minus the accumulated depreciation. The accumulated depreciation account will continue to increase as depreciation is charged each… Read More »
Office expenses Office expenses are typically classified as operating expenses and are included in the income statement of a company’s final accounts. Operating expenses are the day-to-day expenses incurred in the normal course of business operations, such as rent, utilities, office supplies, and salaries. These expenses subtract from the company’s revenue to arrive at its… Read More »