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Dear sir,
Can the depreciation expense be computed using the following formulae:
Opening n.b.v of non current assets + additions – disposals @ n.b.v – closing n.b.v of non current assetsAnd sir i ve one more question which may sound a bit funny but i am unclear on it.. Y r the figures for depreciation, doubtful debts, inventory, the opening balances in a trial balance when trial balance is “as at” say 31.12.15??
It is because the trial balance is prepared as soon as the bookkeeping is finished and before making the year end adjustments.
So the balances on accumulated depreciation, allowance for receivables, and inventory will be the balances that have been there since the start of the year. After preparation of the trial balance, we then make the adjustments for this year – i.e. charge this years depreciation, change the allowance to what is needed this year, and entering the closing inventory.The free lectures on these will help you.
You are welcome 🙂
(I must ask you to change your picture – the ACCA get very upset when people use their logo because it is copyright 🙂 )
Dear sir,
Done with the changing Didnt knew tht, sorry! Sir does published company accounts mean the income statement and sofp of limited companies?Thanks for changing your picture 🙂
Yes – published company accounts means the statements for limited companies.
Thankyou very much sir.. And need not to thank me, we s students owe u.. ????
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