Our company has purchased a machine for 600.000 TL excluding 18% VAT. He paid 47.200 TL, including 18% VAT, for the assembly of the machine in question. Which of the following accounts is correct to use in the relevant accounting record ? a) 253 Plant Machinery and Equipment Hs. 600.000 TL (Borrower) B) 191 VAT Deductible 115.200 TL (Creditor) NS) 391 Calculated VAT Hs. 72.000 TL (Borrower) D) 253 Plant Machinery and Equipment Hs. 640.000 TL (Borrower) TO) 253 Plant Machinery and Equipment Hs. 755,200 TL (Borrower)
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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Our company has purchased a machine for 600.000 TL excluding 18% VAT. He paid 47.200 TL, including 18% VAT, for the assembly of the machine in question. Which of the following accounts is correct to use in the relevant accounting record ?
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