## Sum of Digits Method of Depreciation | Example |

Sum of Digits Method:  The Sum of digits method is formed due to the decrease in the productivity of an asset with the passage of time. It means that an asset has more useful life in the earlier year. So, that’s Read More …

## Insurance Policy Method of Depreciation | Example |

Insurance Policy Method:  In Insurance Policy Method, An endowment policy is taken from an insurance company for an amount which is sufficient for the replacement of an asset. It is similar to sinking fund method only difference is we take Read More …

## Sinking Fund Method of Depreciation | Example |

Sinking Fund Method: In Sinking Fund Method will provide us with an amount of depreciation as well as provide funds for the replacement of this asset when an asset need replacement like the end of life of an asset. Under Read More …

## Annuity Method of Depreciation | Example |

Annuity Method: In Annuity method, we will calculate a fixed amount of depreciation on the original cost of an asset but also calculate interest on the invested amount of capital on the purchase of this asset with help of annuity table. We Read More …

## Diminishing Balance Method of Depreciation | Example |

Diminishing Balance Method: In Diminishing Balance method, we have calculated the depreciation on the closing value of an asset and charge till the book value of an asset will equal to its scrap value. The Amount of depreciation will be Read More …

## Straight Line Method of Depreciation | Example |

Straight Line Method: –  In Straight Line Method, we calculate the fixed amount of depreciation on the original cost of an asset and charge till the book value of an asset will equal to zero or its scrap value. It Read More …

## What is Depreciation | Methods | Examples

What is Depreciation? It means the decrease in the value of Fixed assets by passing time. It is charged only on fixed assets (except Land) Because every fixed asset has a life more than one year but will not last Read More …

## Journal Proper | Subsidiary Books | Examples

What is Journal Proper? Journal Proper is original entry books like as all subsidiaries Books. All those transactions which can not record in the any of other subsidiaries books are recorded in journal proper. In other words, All those transactions placed Read More …

## Bills Payable Book | Subsidiary Books | Examples

Bills of Exchange / Bills Payable (B/P) : – As we already discussed in the previous topic, Bills of Exchange ( Bills Payable) is an instrument in writing form which is signed by the accepter (known as Drawee), directing a Read More …

## Bills Receivable Book | Subsidiary Books | Examples

Bills of Exchange / Bills Receivable (B/R) : – Bills of Exchange is an instrument in writing form which is signed by the accepter (known as Drawee), directing a certain person (known as Drawer) to pay a certain amount against Read More …