What are the purpose of depreciation?
Depreciation is a business expense.It should be charged to revenue irrespective of whether there is profit or loss. The object of charging depreciation are. To arrive at the true working result,net profit or net loss. To show the asset at its proper value, that is at cost less depreciation loss. To retain,out of profits, funds… (0 comment)

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)
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