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# DEPRECIATION ACCOUNTING

Account For XI

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Published    21-Jan-2017      Bilingual

Account refers to a record or statement of financial expenditure for a particular purpose. Depreciation accounts in general terms refers to the reduction in the value of an asset due to usage, passage of time, wear and tear, technology out dating or other such factors. In accounting, it refers to the assigning of cost of a tangible asset across its useful life, roughly corresponding to normal wear and tear. This topic is from unit-2: Accounting Process. In this topic you will cover all the topic as per the syllabus. Aditi is a very dynamic teacher with a very pleasant way of teaching. She has been teaching this subject for last 5 years and always gives relevant examples connecting your life with your chapters. She is just an impeccable teacher. For any query or doubt contact us through mail@studykhazana.com.

Section 1: DEPRECIATION ACCOUNTING (In this section you are going to learn about Depreciation Accounting. In depreciation accounting you will learn the following: Depreciation, its need, factors affecting depreciation, methods of computation of depreciation like straight line method, written down value method and more. All the question provided to you are solved in here in perfect format.)
Lecture 1 Depreciation Accounting (In this video you will understand the term Depreciation and Depreciation Accounting i.e,. fall in the value of the asset, Factors that affect it, some practically feasible examples. Soon after you will learn the some accounting terms like depletion, Obsolescene, Amortisation,etc. Anon you get to learn about the methods of Charging Depreciation with it you will understand the differences among them with some very relevant example. The lecture is providing you notes which you can use for your exam preparation. Thereafter you will learn the method of recording depreciation. You will practice question of each methods and they are: 1) ABC Co. purchased a machinery for Rs 12000 on first April 2016, its scrap value is 2016 and its expected life is 10 years. Calculate the amount of depreciation. 2) ABC Co. purchased a machinery for Rs14000 and spent Rs 10000 on its installation on 1st October, 2016.Depreciation is charged at 10% p.a original lost method. Prepare machinery for 3 years assuming depreciation be charged on 31st march every year. 3) ABC pvt ltd purchased a Hand machine and spent Rs 50000 on its overhauling on 1st July 2014. Depreciation is to be provided @10%p.a on original cost on 31st march every year. On 30th September,2017 Machinery was sold for Rs 44000. Calculate Profit or Loss on such sale and prepare machinery account. 4)Green and Co. purchased a machinery on 1st August 2010 for Rs 60,000. On 1st October 2011 it purchased another machinery 2,20,000. On 30th June 2012 it sold the first machine purchased on 1st August 2010 for Rs 38,500 and on the same date purchased a new machinery for Rs 50,000. Depreciation is provided @20% p.a on original cost on every 31st March. Prepare machinery account. You will to solve the problems in a proper format which is of worth importance.)