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  • Concept and Accounting of Depreciation

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    Shubham
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    The document discusses the concepts and accounting of depreciation. It explains that depreciation is the allocation of the cost of a tangible asset over its useful life. There are various methods used to calculate depreciation expense, including the straight-line method where the cost of the asset minus its scrap value is divided equally over the number of years of its useful life. The document provides examples of calculating depreciation expense using different methods and for assets with different costs and useful lives.

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    Depreciation

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    The document discusses the concepts and accounting of depreciation. It explains that depreciation is the allocation of the cost of a tangible asset over its useful life. There are various methods used to calculate depreciation expense, including the straight-line method where the cost of the asset minus its scrap value is divided equally over the number of years of its useful life. The document provides examples of calculating depreciation expense using different methods and for assets with different costs and useful lives.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    5 views35 pages

    Concept and Accounting of Depreciation

    Uploaded by

    Shubham
    The document discusses the concepts and accounting of depreciation. It explains that depreciation is the allocation of the cost of a tangible asset over its useful life. There are various methods used to calculate depreciation expense, including the straight-line method where the cost of the asset minus its scrap value is divided equally over the number of years of its useful life. The document provides examples of calculating depreciation expense using different methods and for assets with different costs and useful lives.

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    © All Rights Reserved
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    CONCEPT AND ACCOUNTING

    OF DEPRECIATION
    PRINCIPLES AND PRACTICE OF ACCOUNTING
    CONCEPT AND ACCOUNTING OF DEPRECIATION
    PRINCIPLES AND PRACTICE OF ACCOUNTING
    CONCEPT AND ACCOUNTING OF DEPRECIATION

    `
    `

    ` `
    PRINCIPLES AND PRACTICE OF ACCOUNTING
    CONCEPT AND ACCOUNTING OF DEPRECIATION

    Cost of Asset – Scrap Value


    Useful life

    Straight Line Depreciation


    Cost of Asset
    PRINCIPLES AND PRACTICE OF ACCOUNTING

    Residual Value
    1– n × 100
    Cost of asset
    CONCEPT AND ACCOUNTING OF DEPRECIATION

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    PRINCIPLES AND PRACTICE OF ACCOUNTING

    ?
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    n (n + 1) 10 × 11
    2 2
    CONCEPT AND ACCOUNTING OF DEPRECIATION

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    10 + 9 + 8 +7 + 6
    ` `
    10 (10 + 1)
    40 2
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    55

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    5
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    55
    PRINCIPLES AND PRACTICE OF ACCOUNTING

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    CONCEPT AND ACCOUNTING OF DEPRECIATION

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    PRINCIPLES AND PRACTICE OF ACCOUNTING

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    CONCEPT AND ACCOUNTING OF DEPRECIATION

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    PRINCIPLES AND PRACTICE OF ACCOUNTING

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    CONCEPT AND ACCOUNTING OF DEPRECIATION

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    PRINCIPLES AND PRACTICE OF ACCOUNTING

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    3,000
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    24,000
    2,600
    ` ` `
    24,000
    1,800
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    24,000
    CONCEPT AND ACCOUNTING OF DEPRECIATION

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    20,000
    ` ` `
    1,50,000
    15,000
    ` ` `
    1,50,000
    10,000
    ` ` `
    1,50,000

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    PRINCIPLES AND PRACTICE OF ACCOUNTING

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    CONCEPT AND ACCOUNTING OF DEPRECIATION

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    PRINCIPLES AND PRACTICE OF ACCOUNTING

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    CONCEPT AND ACCOUNTING OF DEPRECIATION

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    PRINCIPLES AND PRACTICE OF ACCOUNTING

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    CONCEPT AND ACCOUNTING OF DEPRECIATION

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    PRINCIPLES AND PRACTICE OF ACCOUNTING

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    CONCEPT AND ACCOUNTING OF DEPRECIATION
    PRINCIPLES AND PRACTICE OF ACCOUNTING

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    CONCEPT AND ACCOUNTING OF DEPRECIATION

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    PRINCIPLES AND PRACTICE OF ACCOUNTING

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    CONCEPT AND ACCOUNTING OF DEPRECIATION

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    PRINCIPLES AND PRACTICE OF ACCOUNTING

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    CONCEPT AND ACCOUNTING OF DEPRECIATION

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    PRINCIPLES AND PRACTICE OF ACCOUNTING

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    CONCEPT AND ACCOUNTING OF DEPRECIATION

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