DN Company had the following transactions during th ear of operations: urchased goods worth P100,000 on account aid transportation costs of P10,000 on the purchase a eturned damaged goods worth P2,000 to the supplier old goods costing P82,000 for P123,000 on account. customer returned goods with sale price of P9,000 ar 6,000. "
DN Company had the following transactions during th ear of operations: urchased goods worth P100,000 on account aid transportation costs of P10,000 on the purchase a eturned damaged goods worth P2,000 to the supplier old goods costing P82,000 for P123,000 on account. customer returned goods with sale price of P9,000 ar 6,000. "
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:FDN Company had the following transactions during their first
year of operations:
Purchased goods worth P100,000 on account
Paid transportation costs of P10,000 on the purchase above.
Returned damaged goods worth P2,000 to the supplier.
Sold goods costing P82,000 for P123,000 on account.
A customer returned goods with sale price of P9,000 and cost of
P6,000.
How much is the cost of goods available for sale?
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