On 1.1.2019 Dhofar company bought a carfor OMR 15000. The expected useful life ofthe car is 5 years. The Adjusting entry ofdepreciation is The company bought Machinery worth RO.5000 and made 40% cash as partpayment. The balance was on credit.Which of the following is the correctpresentation of the accounting equation?

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Description: On 1.1.2019 Dhofar company bought a carfor OMR 15000. The expected useful life ofthe car is 5 years. The Adjusting entry ofdepreciation is The company bought Machinery worth RO.5000 and made 40% cash as partpayment. The balance was on credit.Which o

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On 1.1.2019 Dhofar company bought a car for OMR 15000. The expected useful life of the car is 5 years. The Adjusting entry of depreciation is

Essentials Of Investments

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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

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Concept explainers

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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On 1.1.2019 Dhofar company bought a car
for OMR 15000. The expected useful life of
the car is 5 years. The Adjusting entry of
depreciation is

The company bought Machinery worth RO.
5000 and made 40% cash as part
payment. The balance was on credit.
Which of the following is the correct
presentation of the accounting equation?

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On 1 October 2019, company X (with a year-end as at 30th Sept) acquired an item of machinery for£10,720. During the year, the machinery had got damaged and was underperforming, although it was stillbeing used. By 30 September 2020, following the damage, the item of machinery had an estimatedremaining useful life of two years, a value in use of £6,300 and a fair value of £6,400. The costs to sell theitem of machinery amounted to £500. Company X depreciates machinery on a reducing balance basis ata rate of 20% per annum.Compute the impairment loss in relation to the aforementioned item of machinery to be shown in companyX’s income statement for the year ending 30th September 2020.
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st On 1 January 2019, a machine was bought by ABC Company at a cost of OMR 70,000. The machine has a useful life of 5 years and a salvage value OMR 2,000. How much is the book value at the end of the year 2019 using straight line method? a. OMR 13,600 b. OMR 50,000 c. OMR 56,400 d. OMR 68,000
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