Hello Below is my answers to a deminishing balance method question: My Answer: Depreciation of Vehicles(672000-384000)=288000*20%=57600 Question: Provide depreciation on vehicles at 20% p.a. using the diminishing balance method, Vehicles at Cost 672 000, Accumulated Depreciation on Vehicles 384 000 from PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2020. Note: there are no other information concerning prvious years depreciation required.
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.
Hello
Below is my answers to a deminishing balance method question:
My Answer:
Question: Provide depreciation on vehicles at 20% p.a. using the diminishing balance method, Vehicles at Cost 672 000,
Note: there are no other information concerning prvious years depreciation required.
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