DEPRECIATION

This book is brought up in accordance with the subject of Depreciation. In this book, the subject matter is expressed in clear way so that each and every reader understand the subject easily. In the book, I clearly mentioned the Meaning of Depreciation, causes for depreciation, Need for providing depreciation, Methods of depreciation with suitable examples. Hence, this book will help the readers to understand Depreciation. I believe that with the help of this book, every reader gets the scope of knowledge which helps them in getting the understanding of Depreciation basics. I wish that this book will win the heart of every user.

The main features of the book are simple understanding and key concepts.

This book is very helpful to readers to learn about Depreciation accounting with suitable examples.

This book is useful to everyone in Accounts field like students, Accounts executives, Analysts etc… .

It is hoped that this will facilitate a better understanding of the subject matter.

I welcome any valuable suggestions regarding this book in a better and improved way. Suggestions will be incorporated in the subsequent editions.

 

CONTENTS

A. MEANING OF DEPRECIATION

B. ACCUMULATED DEPRECIATION

C. DEPRECIATION ACCOUNTING – AS 6

      1. DEFINITIONS

            (i) Depreciation

            (ii) Depreciable assets

            (iii) Useful life

            (iv) Depreciable amount

        2. DISCLOSURE

D. DIFFERENCE – DEPRECIATION, AMORTIZATION, DEPLETION AND DILAPIDATION

E. CAUSES OF DEPRECIATION

F. NEED FOR PROVIDING DEPRECIATION

G. ACCOUNTING FOR DEPRECIATION – JOURNAL ENTRIES

      1. When Accumulated depreciation/Provision for depreciation is not maintained

      2. When Accumulated depreciation/Provision for depreciation is not maintained

H. METHODS OF DEPRECIATION

      1. Straight line method with example

      2. Written Down Value method with example

      3. Annuity method with example

      4. Depreciation Fund (Sinking fund) method with example

      5. Double declining balance method with example

      6. Units of production method with example

      7. Machine hour rate method with example

      8. Sum of years digits method with example