OpenTuition | ACCA | CIMA
Free ACCA and CIMA on line courses | Free ACCA, CIMA, FIA Notes, Lectures, Tests and Forums
Sign up with YouTube premium to watch our lectures Ad-free and download them to watch offline.
Specially for OpenTuition students
October 5, 2020 at 2:39 pm
Nice lecture sir,
You said we dont deduct the depreciation from the car account, because it would become a mess if there were many cars to work with.
Wont it also look like a mess with multiple cars if all their depreciations are added to the Accumulated Depreciation Account?
John Moffat says
October 5, 2020 at 3:22 pm
No. I was not saying that the account would look a mess but that it would make it hard to calculate the depreciation because each car will have been bought at different times and we would have to spend time deciding how much each car originally cost.
October 6, 2020 at 11:58 am
Unless we assigned a separate Accumulated Depreciation Account PER car or other non current assets, I do not grasp as a beginner how would we be solving this problem that you mentioned if we just assigned a single Accumulated Depreciation Account for all the cars. In that case, how would it beat the problem that we face when directly deducting from the Car Account instead? In the Car account all the calculations of different cars would be gathering together, and so the same case would be as well with the new Account that you mentioned to create. So did you mean to create Accumulated Depreciation Account per car ?
November 14, 2019 at 8:43 am
Thank you John i needed a reminder on this
August 5, 2018 at 5:09 pm
A very well explained subject – thank you!
August 5, 2018 at 5:20 pm
Thank you for your comment 🙂
You must be logged in to post a comment.