First is the picture Then : The following additional information is available as at 31 March 2020 (a) Inventories at the close of business on 31 March 2020 was valued at £25,550 (b) Insurances have been prepaid by £850 (c) Heating and Lighting is accrued by £1,210 (d) Rates have been prepaid by £3,482 (e) Delivery cost is accrued by £905 (f) Depreciation charge for Fixtures and Fittings for the year £12,584. (g) Depreciation charge for Motor Vehicles for the year £9,440. And the question are: 1.Prepare Dysn Ltd Statement of Profit or Loss (Income Statement) statement of account for the year ended 31 March 2020 2.Prepare Dysn Statement of Financial Position as at 31 March 2020. 3.Identify 3 possible limitations of Dysn Ltd Statement of Profit or Loss (Income Statement) for the year ended 31 March 2020
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.
First is the picture
Then :
The following additional information is available as at 31 March 2020
(a) Inventories at the close of business on 31 March 2020 was valued at £25,550
(b) Insurances have been prepaid by £850
(c) Heating and Lighting is accrued by £1,210
(d) Rates have been prepaid by £3,482
(e) Delivery cost is accrued by £905
(f)
(g) Depreciation charge for Motor Vehicles for the year £9,440.
And the question are:
1.Prepare Dysn Ltd Statement of Profit or Loss (Income Statement) statement of account for
the year ended 31 March 2020
2.Prepare Dysn
3.Identify 3 possible limitations of Dysn Ltd Statement of Profit or Loss (Income Statement)
for the year ended 31 March 2020
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