The following adjusted TRIAL Balance is given for ACAR Photography. ACAR Photography Adjusted TRIAL BALANCE Dec., 31, 2018 Accounts Debit Credit Cash Accounts receivable Supplies Notes Receivable 30.000 60.000 15.000 6.400 Land 80.000 Building Accumulated Depreciation- Building 320.000 42.000
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
