Interested to Buy Any Domain ? << Click Here >> for more details...
Why depreciation is charged in P&L Account?
- 25 Answers
- 57798 Views
- Deloitte, FIC, I also Faced
- E-Mail Answers
Answer Posted / harika r
I would say the purpose of charging depreciation to P & L
a/c are
1. Unless a proper charge on account of depreciation is
included in P & L a/c, the true cost of manufacture of
different products will not be ascertained.
2. Depreciation is an expense incurred for earning profit,
which is similar to the hire of an asset, the only
difference being that in one case the amount is paid to an
outsider while, in the other, it is kept in the entity
itself.
3. If depreciation had not been charged, the net income
would have been overstated over the years of the life of
the asset, and if the same was withdrawn or distributed as
dividends, the business would have no funds for the
replacement of the asset.
| Is This Answer Correct ? | 2 Yes | 0 No |
Post New Answer View All Answers
i am the student of icwai (intermidiate) What is the tds and how use the different state ..
Sales for ABC Company were Rs.150,000 for 2003.The beginning inventory was 30% of the cost of goods sold.The ending inventory was 50% of the beginning invetory.Selling expenses were 10% of sales and absorbed 30% sales.Income taxes were 30% of net income before taxes.
Expand MNS
give the details of overheads which are not included in costing
Since minority interest is balance sheet item, and got brought foward figure, how to disclose brought forward figure in consolidation work sheet instead of we make adjustment on current year to show their share in subsidiary.
Short Answer on _____________Revenue Budget
AT THE TIME OF REDEMPTION OF DEBENTURES. WHEN THERE IS PROFIT/LOSS ON SALE OF DEBENTURES WE TRANSFER THAT AMOUNT IN PROFIT AND LOSS A/C BUT WHEN WE CANCEL OUR DEBENTURES AFTER BUYING IT FROM OPEN MARKET THE DIFFERENCE BETWEEN MARKET VALUE AND COST OF DEBENTURES TRANSFER TO "CAPITAL RESERVE ACCOUNT .. WHY SO ANY PRACTICAL ANSWER ??
Ram retired from partnership. The partners with mutual consent agreed to put the capital balance as on the date of retirement as loan to the firm @ 18% pa. The credit balance to his capital account was Rs 325000/- Pass necessary entry
Should I have perfect credit score, that is, above 800 credit score?
which is the combine entry in ERP?
After Posting the Document in SAP FICO Using the sort key then where we can see the sort key in SAP
Hi guys, If anyone have gone through the CAPITAL IQ-Junior Research Associate interview then plz let me know about its pattern..and if anyone hav its placement papers or any other information then plz post to me at arshadbasha_mba@rediffmail.com
How shall I calculate the true profit of my business, as I am a layman for accounting.
i want the difference p&l a/c and Income and expediture statement
What does my credit score mean?
