Accounting
Accounting
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In our eReader you can find the full English version of the book. Read Accounting Online - link to read the book on full screen. Our eReader also allows you to upload and read Pdf, Txt, ePub and fb2 books. In the Mini eReder on the page below you can quickly view all pages of the book - Read Book Accounting
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Dec. 31 Profit & Loss Account 7517 Interest (6 % on 156 5s. LOd. ) .
9 7 Etc. Etc.
It will be observed that the annual provision from Profit and Loss Account, which is credited to the Sinking Fund, represents the difference between the charge for depreciation upon, and the amount of interest debited against, the asset account in the first year under the Annuity method. In subsequent years the amount of the asset account, less the amount to the credit of the Sinking Fund (Method IV), will be ide...ntical with the balance of the former account as dealt with under Method III.
It should be observed that the illustration last given is entirely theoretical in the calculation of interest at the rate of 6 per cent, per annum and in the estimate of a full year's interest upon the exact amount of the Sinking Fund as accumulated to the end of any year. These assumptions are made mainly to permit of comparison between the Annuity and Sinking Fund systems.
The methods of providing for depreciation as illustrated have been operated on the basis of a fixed percentage which has been assumed to cover the loss arising.
What to read after Accounting?
You can find similar books in the "Read Also" column, or choose other free books by Sidney Stanley Dawson to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
Dec. 31 Profit & Loss Account 7517 Interest (6 % on 156 5s. LOd. ) .
9 7 Etc. Etc.
It will be observed that the annual provision from Profit and Loss Account, which is credited to the Sinking Fund, represents the difference between the charge for depreciation upon, and the amount of interest debited against, the asset account in the first year under the Annuity method. In subsequent years the amount of the asset account, less the amount to the credit of the Sinking Fund (Method IV), will be ide...ntical with the balance of the former account as dealt with under Method III.
It should be observed that the illustration last given is entirely theoretical in the calculation of interest at the rate of 6 per cent, per annum and in the estimate of a full year's interest upon the exact amount of the Sinking Fund as accumulated to the end of any year. These assumptions are made mainly to permit of comparison between the Annuity and Sinking Fund systems.
The methods of providing for depreciation as illustrated have been operated on the basis of a fixed percentage which has been assumed to cover the loss arising.
What to read after Accounting?
You can find similar books in the "Read Also" column, or choose other free books by Sidney Stanley Dawson to read onlineMoreLess
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