Assistant Statistical Officer Paper II · 4 Financial Accounting · APPSC Paper I
4.5 Depreciation, reserves, single entry and non-trading concerns notes
2 notes, in reading order.
- 4.5.1Depreciation (straight line, written down value), provisions and reserves
Depreciation spreads the cost of a fixed asset (less its scrap value) over its useful life as an expense; the straight line method charges the same amount every year, the written down value method charges a fixed percentage on the falling book value; provisions meet known liabilities or losses, while reserves keep back profit for the future.
Advanced · 11 min · Full course - 4.5.2Single entry system (statement of affairs) and accounts of non-trading concerns (receipts and payments, income and expenditure)
Under the single entry system (incomplete records) profit is found by comparing capital at two dates through statements of affairs; non-trading concerns (clubs, societies, hospitals) prepare a receipts and payments account (cash summary), an income and expenditure account (surplus or deficit on accrual basis) and a balance sheet.
Advanced · 10 min · Full course
Practise Depreciation, reserves, single entry and non-trading concerns. Questions with answers explained, from the same topics.
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