Depreciation : Depreciation means depletion in the value of the asset due to continued utilization in the processes. It turns the asset obsolete after a certain period of time. Depreciation can be calculated by using straight line method or double declining method. Journal Entries : Journal entries are the basic entries recoded as per the transactions being entered into by the business in its day to day operations in a chronological order. Accounting rules regarding journal entries: Balance increases when: assets, losses and expenses are debited and liabilities, gains and incomes get credited. Balance decreases when: assets, losses and expenses get credited and liabilities, gains and incomes are debited. To prepare: Journal Entries

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Chapter 10, Problem 4PSB

To determine

Depreciation:

Depreciation means depletion in the value of the asset due to continued utilization in the processes. It turns the asset obsolete after a certain period of time. Depreciation can be calculated by using straight line method or double declining method.

Journal Entries:

Journal entries are the basic entries recoded as per the transactions being entered into by the business in its day to day operations in a chronological order.

Accounting rules regarding journal entries:

Balance increases when: assets, losses and expenses are debited and liabilities, gains and incomes get credited.

Balance decreases when: assets, losses and expenses get credited and liabilities, gains and incomes are debited.

To prepare:

Journal Entries

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