All provisions comes under current liabilities so provision for depreciation is as well because it is made for one fiscal year only.
Provision of depreciation account is the account of provision of depreciation.First of all we should understand provision of depreciation .Provision of depreciation is the collected value of all depreciation. With making of this account we are not credited depreciation in asset account. But transfer every year depreciation to provision of depreciation account. Every year we adopt this procedure and when assets are sold we will transfer sold assets 'total depreciation to credit side of asset account. For calculating correct profit or loss on fixed asset. This provision uses with any method of calculating depreciation.
Current liabilities.
Do you mean: can a bank balance be a liability? If so, yes. If a bank balance is an overdraft then that balance should be shown in current liabilities.
I have to say that this question doesn't seem plausible. The reason being,Current Liabilities are liabilities that are short-termed, meaning they will be paid in a very short time. Usually one year or less.Long-Term Liabilities are liabilities that are much longer and will be paid out during a long period of time, more than a year.There should be no current liabilities in long-term liabilities unless an error was made during the accounting process and an current liability was recorded as an long-term, in which case, an adjusting entry must be made to show this error.Other than an accounting error, there are not current liabilities in long-term to "take out".
The Asset/Liability Ratio is one of the easiest to figure: Current Ratio = Current Assets/Current Liabilities According to your question that should be: Current Ratio = 150 / 65 Current Ratio = 2.31 (rounded to two digits)
Provision of depreciation account is the account of provision of depreciation.First of all we should understand provision of depreciation .Provision of depreciation is the collected value of all depreciation. With making of this account we are not credited depreciation in asset account. But transfer every year depreciation to provision of depreciation account. Every year we adopt this procedure and when assets are sold we will transfer sold assets 'total depreciation to credit side of asset account. For calculating correct profit or loss on fixed asset. This provision uses with any method of calculating depreciation.
Yes provisions are made for one fiscal year only and every year it is change so it is current liability
no, provision of depreciation iscredit in nature. And thus it should be shown at the credit side at trial balance.
Current liabilities.
Do you mean: can a bank balance be a liability? If so, yes. If a bank balance is an overdraft then that balance should be shown in current liabilities.
I have to say that this question doesn't seem plausible. The reason being,Current Liabilities are liabilities that are short-termed, meaning they will be paid in a very short time. Usually one year or less.Long-Term Liabilities are liabilities that are much longer and will be paid out during a long period of time, more than a year.There should be no current liabilities in long-term liabilities unless an error was made during the accounting process and an current liability was recorded as an long-term, in which case, an adjusting entry must be made to show this error.Other than an accounting error, there are not current liabilities in long-term to "take out".
Depreciation is an expense. It should be charged under expense of a P&L Statement. Provision for Depreciation is the total depreciation of a particular fixed asset accumulated over the years. It should be deducted from the figure of the Fixed asset.
The Asset/Liability Ratio is one of the easiest to figure: Current Ratio = Current Assets/Current Liabilities According to your question that should be: Current Ratio = 150 / 65 Current Ratio = 2.31 (rounded to two digits)
Basically it is a reserve however it should be carried as a liability on the books until paid then espense it however if the Co is for Sale You may show it as a reserve asset due to the fact that the full liability may never be incurred
I will not actually work the problem for you, however, I will give you the formula to find the current ratio and the quick ratio. Current Ratio = Current Assets / Current Liabilities The quick Ratio is Quick ratio = (current assets - inventories) / current liabilities Use the numbers you provided above to fill in the blanks and you should get the current ratios and quick ratios with no problem. / = divided by
The sections you would find are assets, liabilities, and equity. More specifically: Fixed Assets (non-current assets) Current Assets Current Liabilities Long Term Liabilities (non-current Liabilities) Equity. International accounting concepts do not give a defined layout for a balance sheet. So you can lay it out as Assets less Liabilities balanced to the Equity or Assets balanced to Equity plus Liabilities.
why should we add indirect taxes and depreciation?