OFFICE OF OFFICE OF CAM ASSIGNMENT The folowing are the transactons of Clam Rado dectranics repair shop for the morth af a Clara Rado nvested the tollowing in hernewly opened electronic repair shop P 50,000 30,000 Equipment b Purchased office supplies worth P 4.000 in cash. C. Paid rent for the shop space, P 4,000. a Purchased equipment, P 20,000 with 50% down payment and the balance on account. a Rerdered service to clent, cash P70,000. t Paid the salary of shop assistant, P 7,000. 9 Rendered nervicos to dinnta worth P 30,000 canh and P S5,000 wih promissory notes. h Collected P30.000 of the account receivables. i Seted the accounts payable trom the purch quipment on transacton letter D. + Paid electric bil of P 2.000: water bill P 500, and tlephone bill P 500.
OFFICE OF OFFICE OF CAM ASSIGNMENT The folowing are the transactons of Clam Rado dectranics repair shop for the morth af a Clara Rado nvested the tollowing in hernewly opened electronic repair shop P 50,000 30,000 Equipment b Purchased office supplies worth P 4.000 in cash. C. Paid rent for the shop space, P 4,000. a Purchased equipment, P 20,000 with 50% down payment and the balance on account. a Rerdered service to clent, cash P70,000. t Paid the salary of shop assistant, P 7,000. 9 Rendered nervicos to dinnta worth P 30,000 canh and P S5,000 wih promissory notes. h Collected P30.000 of the account receivables. i Seted the accounts payable trom the purch quipment on transacton letter D. + Paid electric bil of P 2.000: water bill P 500, and tlephone bill P 500.
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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