July 31, 2022 Account Titles Cash Accounts Receivable Equipment Accumulated Depreciation-Equip. Accounts Payable Ungarned Rent Revenue Debit $ 9,840 8,780 15,900 Credit $ 7,400 4,220 1.800
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.
prepare finacal statments
Journal entries refer to the process of stating the day-to-day transactions of a company as per the desired accounting format and norms in the books of account.
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