Accounting For End Of Period Adjustments: Depreciation
Akopọ
By the time a set of final accounts is being prepared, a business already knows how to calculate a depreciation charge. The harder question at the year end is what to do with it: how much of it belongs in this year's income statement, how much should sit on the statement of financial position, and what happens to both figures if an asset was sold partway through the year.
In this lesson you will learn how depreciation moves from a trial balance figure into the financial statements: the charge for the year in the income statement, the provision for depreciation and carrying value in the statement of financial position, and the adjustment needed when a non-current asset is disposed of during the period.
Awọn Afojusun
- Explain the causes of depreciation
- Distinguish between straight line and reducing balance methods of depreciation
- Calculate and record depreciation in the books of account
- Calculate and record profit or loss of disposal of non-current assets
Akọ̀wé Ẹ̀kọ́
O wa lori ohun elo Green Bridge
Gba ohun elo Green Bridge CBT sori foonu tabi kọmputa rẹ lati ri awọn akọsilẹ ẹkọ ni kikun, awọn ibeere adaṣe, ati diẹ sii.
Ìdánwò Ẹ̀kọ́
Oriire fun ipari ẹkọ lori Accounting For End Of Period Adjustments: Depreciation. Ni bayi ti o ti ṣawari naa awọn imọran bọtini ati awọn imọran, o to akoko lati fi imọ rẹ si idanwo. Ẹka yii nfunni ni ọpọlọpọ awọn adaṣe awọn ibeere ti a ṣe lati fun oye rẹ lokun ati ṣe iranlọwọ fun ọ lati ṣe iwọn oye ohun elo naa.
Iwọ yoo pade adalu awọn iru ibeere, pẹlu awọn ibeere olumulo pupọ, awọn ibeere idahun kukuru, ati awọn ibeere iwe kikọ. Gbogbo ibeere kọọkan ni a ṣe pẹlu iṣaro lati ṣe ayẹwo awọn ẹya oriṣiriṣi ti imọ rẹ ati awọn ogbon ironu pataki.
Lo ise abala yii gege bi anfaani lati mu oye re lori koko-ọrọ naa lagbara ati lati ṣe idanimọ eyikeyi agbegbe ti o le nilo afikun ikẹkọ. Maṣe jẹ ki awọn italaya eyikeyi ti o ba pade da ọ lójú; dipo, wo wọn gẹgẹ bi awọn anfaani fun idagbasoke ati ilọsiwaju.
- A trial balance shows equipment at cost $30,000 and a provision for depreciation of $10,000. What is the carrying value? A) $10,000 B) $20,000 C) $30,000 D) $40,000 Answer: B
- Which figure is reported as an expense in the income statement? A) The closing provision for depreciation B) The depreciation charge for the year only C) The asset's original cost D) The asset's carrying value Answer: B
- Non-current assets at cost $25,000 have an opening provision for depreciation of $9,000. This year's charge is $2,500. What is the closing provision for depreciation? A) $9,000 B) $11,500 C) $6,500 D) $2,500 Answer: B
- Where does a profit or loss on disposal of a non-current asset appear? A) Added to the provision for depreciation B) As a separate line in the income statement C) Deducted from trade receivables D) It does not appear in the financial statements Answer: B
- Equipment costs $12,000 and has a closing provision for depreciation of $7,500. What carrying value is shown on the statement of financial position? A) $4,500 B) $7,500 C) $12,000 D) $19,500 Answer: A
O wa lori ohun elo Green Bridge
Gba ohun elo Green Bridge CBT sori foonu tabi kọmputa rẹ lati ri awọn akọsilẹ ẹkọ ni kikun, awọn ibeere adaṣe, ati diẹ sii.
O wa lori ohun elo Green Bridge
Gba ohun elo Green Bridge CBT sori foonu tabi kọmputa rẹ lati ri awọn akọsilẹ ẹkọ ni kikun, awọn ibeere adaṣe, ati diẹ sii.
Awọn Iwe Itọsọna Ti a Gba Nimọran
Ṣe Adaṣe Awọn Ibeere Idanwo Adaṣe
Ṣe o fẹ ṣe adaṣe awọn ibeere idanwo adaṣe nipa Accounting For End Of Period Adjustments: Depreciation? Ṣe igbasilẹ ohun elo Green Bridge CBT lati wọle si awọn ibeere idanwo adaṣe ati awọn ayẹwo adaṣe kikun fun koko-ọrọ yii.
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