Hand Creamy Limited 31 December 31 December 31 December 31 December 2016 2017 2018 2019 Balance Sheet Non-current assets Land Equity Revaluation surplus Income Statement Other income and expenses Loss on revaluation Loss on disposal Statement of Comprehensive Income Unrealised gain Revaluation surplus
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.
Hand Creamy Limited purchased a land for $150,000 cash on 1 September 2016 and a machine for $300,000 cash on 1 July 2017. The useful life of the machine is 10 years, no residual value and
Required a) Provide the
b) Disclose the extract of
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