Depreciation

Topic Link Level Meaning and Characteristics Click Here Basic Objectives of providing depreciation Click Here Basic Factors in depreciation calculation Click Here Basic Methods of recording depreciation Click Here Basic Asset Disposal Account Click Here Basic

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Meaning of Depreciation

Depreciation is the reduction in the value of an asset due to : Depreciation can be used both in the practical sense and in accounting sense. In practical sense the reduction happens in the market value of an asset you own like mobile phone, laptop, car, furniture, washing machine, TV, etc. whose value reduces as

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Gaining Ratio and Sacrificing Ratio – Difference

Description Gaining Ratio Sacrificing Ratio Formula for calculation New profit Sharing Ratio Less Old Profit Sharing ratio Old profit sharing Ratio Less New profit Sharing Ratio When calculated a) Retirement of a Partner b) Change in profit sharing ratio among existing partners a) Admission of a partner b) Change in profit sharing ratio among existing

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Broad money supply and Narrow money supply concepts

The measurements of money supply can be classified into Broad money supply and Narrow money supply. But to understand this first we have to understand the meaning of liquidity of money Liquidity of Money Liquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price. The most

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Supply of Money

There are two different concepts. First is stock of money and second is supply of money. And both are very much different. Lets first understand the stock of money. Stock of money includes the amount of money held by a) consumers of money i.e. people of the country and b) Suppliers/Producers of money i.e. Government

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