Qualification > Commerce

Accounting please answer

<< < (2/3) > >>

I Jimmy I:
Its a liability....
I mean think of it, ur providing for depreciation...

Monica:

--- Quote from: I Jimmy I on May 25, 2009, 06:27:45 pm ---Its a liability....
I mean think of it, ur providing for depreciation...

--- End quote ---

ukhhhh, i dont want to enter wid this argument with u like b4!!lol!!
 
ok maybe ur right...but i just have one question if it is a liability why do we add it under fixed assets column??
becuz in da exam i did it asset, so maybe i am wrong...

fireburner:
Depreciaiton is neither an asset nor a liability.

Assets are any physical property that has a value and are needed in order to run a business and depreciation are basically a reduction in the value of the assets.

During each accounting period (year, quarter, month, etc.) a portion of the cost of these assets is used up. The portion being used up is reported as Depreciation Expense on the income and expenditure(non-trading) statement or on the Profit and loss statement(trading).

Monica:

--- Quote from: fireburner on May 25, 2009, 06:32:01 pm ---Depreciaiton is neither an asset nor a liability.

Assets are any physical property that has a value and are needed in order to run a business and depreciation are basically a reduction in the value of the assets.

During each accounting period (year, quarter, month, etc.) a portion of the cost of these assets is used up. The portion being used up is reported as Depreciation Expense on the income and expenditure(non-trading) statement or on the Profit and loss statement(trading).

--- End quote ---

ya ur right but i guess he meant Provision for depreciation....

angell:
Deprciation is NOT an asset or a liability - its  an expense!!

Provision for depreciation, however, is an ASSET.

Navigation

[0] Message Index

[#] Next page

[*] Previous page