Question

How will you show asset in the balance sheet as on Dec. 31, 2002 when (0) Normal
depreciation method is adopted (ii) When provision for depreciation method is adopted?
Plant: Rs. 37,380]
Details are :
Cost price of the asset = Rs. 24,000
Depreciation per year = Rs. 2,000
Purchase date of the asset = 1-1-1998


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Answer 1

Answer:

Explanation:

1. when normal depriciation is calculated on assets it is simply deducted from asset's balance in asset side of B/S

2. when Provision is made for depriciation, the depriciation of current year is added to the depriciation fund which is written on liability side of balance sheet.