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Depreciation is typically not charged on work in progress (WIP) because WIP consists of materials and labor that are not yet completed products. Depreciation applies to fixed assets, such as machinery or equipment, that are used in the production process. Instead, costs associated with WIP are generally capitalized until the products are completed and ready for sale, at which point they can be included in the cost of goods sold. Therefore, WIP itself does not incur depreciation.
What else can I help you with?
If depreciation is charged on original cost than which method of depreciation should be used?
kavita purchased machinery of rs 5 lak on 1 jan 2007 she also paid instullation charged rs 5o thousand, she sold the machinary 2011 rs 4 lack depreciation is charged at 10 % on 31 dec pass the necessary journal entry under original cost method.
Why should you add indirect taxes and depreciation?
why should we add indirect taxes and depreciation?
How should depreciation be treated in budget preparation by a nonprofit corporation?
How should depreciation be handled in a non profit budget?
What is provision for depreciation?
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.
Can the asset revaluation reserve amortized or written off to the P and L every year?
No! the asset revaluation reserve equal to the amount of depreciation charged during the year on the revalued asset should to be transaferred to the Retained Earning.
Why should depreciation be treated as expense?
Depreciation is a portion of fixed asset charged to income statement due to wear and tear of assets during use in business in fiscal year that's why that wear and tear is accounted for by using depreciation.
If depreciation is charged on original cost than which method of depreciation should be used?
kavita purchased machinery of rs 5 lak on 1 jan 2007 she also paid instullation charged rs 5o thousand, she sold the machinary 2011 rs 4 lack depreciation is charged at 10 % on 31 dec pass the necessary journal entry under original cost method.
What are the effect of depreciation on profit and loss and balance sheet?
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.
Every how long should I increase the weight I use when working out?
When working out you should increase the weight you use gradually as you progress with your workout.
Matching concepts of depreciation?
basic matching concept of account is that all expenses of same fiscal years should be matched with revenues of that fiscal year and depreciation is also charged for that portion of asset which is used in specific fiscal year.
Why should you add indirect taxes and depreciation?
why should we add indirect taxes and depreciation?
What is accumulated depreciation?
The accumulated deprecation is the all the depreciation amounts should be the accumulated depreciation.
How should depreciation be treated in budget preparation by a nonprofit corporation?
How should depreciation be handled in a non profit budget?
How do you reset the air conditioning system once it is charged?
A typical automotive ac system in good working order doesn't need to be "reset". It should operate once it has been charged. Something else may be wrong if it is not working.
Should depreciation expenses be reported in retained earnings?
no
What is provision for depreciation?
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.
What are some good online resources to learn about asset depreciation?
To learn about asset depreciation, you should go to en.wikipedia.org/wiki/Depreciation. Another good site is taxguide.completetax.com/text/Q14_2900.asp
