What are the causes of depreciation?
Depreciation is caused by one or more of the following factors:- Wear and tear: Assets get worn or torn out on account of constant use as is the case with plant and machinery or Furniture.”Wear and tear” signifies the shrinkage of value arising from use. Exhaustion or Depletion : An asset may get exhausted through… (0 comment)

What is depreciation?
Definition: Generally Speaking depreciation is the gradual decrease in the value of an asset due to any cause.It has been defined as “The permanent and continuing diminution in the quality,quantity or value of an asset“. But the term depreciation is commonly used in relation to fixed assets only.It is “that part of the cost of… (0 comment)

Relation between journal and ledger
As per Accounting definition, Accounting is the art of recording,classifying and summarizing of business events in terms of money. The primary function of accounting is the recording of business transactions. The Most important part of accounting is the recording which involves journal and ledger. Journal and ledger are the two books of records. Transactions are initially… (0 comment)

compound journal entry example
An entry in a journal which contains more than one debit and once credit are necessary ,the entry is called compound journal entry. Or in other words an entry which affects more than two accounts is called compound journal entry. A compound journal entry may have one debits and two or more credits or one… (0 comment)

Simple journal entries examples
An entry in a journal which contains only one debit item and one credit item is called a simple journal entry. The following example will illustrate this point. Example: March 31 : Paid Rent Rs 1000 March 31 : Paid wages Rs 2500 March 31 : Paid Salaries Rs 5000 Lets record this transactions in simple journal… (0 comment)

Format of journal in accounting
A Format of Journal tells, how journal entries are recorded in the journal books. The arrangement of each entry in a page of a book is termed as Journal format.Journal entry is the first step taken after a business transaction is taken place. First we analyse the transaction and find out which accounts are affected with the transaction,… (0 comment)
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