Accumulated depreciation which is not shown in income and expenditure account as expenditure and the same is included in the net profit and shown separately as depreciation reserved fund while adding it in the capital fund.
The Reserve Fund was the first money market mutual fund
To preserve the corpus for the remainder beneficiaries
Sinking fund method is a method of depreciation if a large sum of money is required for replacement of an asset at the end of its effective life it may not be advisable to leave in the amount of depreciation set apart annually, for it may or may not be available in the form of the readily realisable assets to the concern at the time it is required. To safegaurd this position the amount annually provided for depreciation may be placed to the credit of the sinking fund account
Debit fund balance and credit encumrances because the reserve for encumbrances need not be closed because it is a balance sheet account.
Depreciation is taken out of cash flow information because it does not account for any cashflow, just like provisions. The notes which account for this deduction is "Reconciliation of PBT with cash generated from Operation".
Accumulated depreciation which is not shown in income and expenditure account as expenditure and the same is included in the net profit and shown separately as depreciation reserved fund while adding it in the capital fund.
The Reserve Fund was the first money market mutual fund
The Reserve Fund was created in 1971
Sinking fund method for depreciation The straight line method has equal annual depreciation for every year. There are other methods which has more depreciation allocated to the earlier years like Written-Down Value (WDV) method in which depreciation is charged at fixed rate (%) on the reducing balance (i.e. cost less depreciation) every year. The sinking fund method allocates more depreciation to the later years. The depreciation for the first year equals the annual deposit needed for a sinking fund to accumulate at the given rate to an amount that equals the depreciation base. For each consecutive year, the annual depreciation equals the annual sinking fund deposit plus the interest earned on the fund up to that year.
The Reserve Fund was the first money market mutual fund
No FLow
State General Reserve Fund was created in 1980.
Revenue Equalization Reserve Fund was created in 1956.
Investment deportation reserve not considered as free reserve
it is necessary to provide depreciation even business is running in loses or in profit because depreciation provides fund for future and remove the burden of fund for purchasing new machinery when old machinery are broken down.
To preserve the corpus for the remainder beneficiaries
to preserve the corpus for the remainder beneficiaries