REQUEST LETTER TO STOP PAYMENT OF CHEQUE
Posts
Registration of Business with Islamabad Chamber of Commerce and Industry (ICCI)
Registration of Business with Islamabad Chamber of Commerce and Industry ICCI has been serving the Economy of Pakistan and has continuously contributed to its development and progress. The ICCI always tries to support and serve the business community and highlight the issues in front of Government in order to resolve them. If you are running your own business or working in an organization and want to become Corporate Member of ICCI. Following is the procedure that you need to follow, Required Documents if Business is Sole Proprietorship: 1. Obtain Membership Form from ICCI official website or Office 2. Fill in the form properly. a. Write business name and then business owner name b. Must provide 2 reference/seconded which should be valid member of ICCI c. Mention the Person Name...
Depreciation under Reducing Balance Method
Depreciation under Reducing Balance Method In reducing balance method more depreciation is charged at the beginning of the asset and less is charged towards the end, because asset is more producible and efficient in the start. Therefore it generate more revenue as compared to later years. In reducing balance method depreciation rate is calculated and then every year such depreciation rate is charged on residual value. Now the question is that how can we find the rate of depreciation for Reducing Balance Method ? Formula is given below S = Residual Value C = Depreciable Costof an Asset n = E stimated Useful Life
Straight Line Depreciation Method
Straight-line Method: The most widely used method is straight line method. Under this approach, an equal portion of depreciable amount of an asset is allocated to expense in every period of assets’ estimated useful life till the asset remain in use. Formula is given here, Depreciable Cost Estimated useful Life List of Depreciation Methods For video link please click here https://www.youtube.com/watch?v=hUV_xnsTCHM&t=251s
Methods of Depreciation
There are various methods of allocating depreciation to accounting period. An entity should choose the method which best reflect the way the future benefits arising from the asset will be consumed by the entity. There are following 5 methods for calculation of depreciation that are normally used, i. StraightLine Method ii. Reducingbalance Method iii. Double declining Method. iv. Machine hour Method v. Sum of year digit Method For video lecture please click below link https...
Residual Value of an Asset
Residual Value: The net amount which the entity expects to obtain for an asset at the end of its useful life after deducting the expected cost of disposal is know as Residual Value of an Asset. For Video Lecture please click below link https://www.youtube.com/watch?v=hUV_xnsTCHM&t=251s
Useful Life of an Assets
What is useful life of an Asset? Period over which an assets is expected to be available for use by an entity or the number of production or similar units expected to be obtained from the assets by an entity is called useful life. Following three factors should be considered when estimating the useful life of a depreciable asset. Expected physical wear and tear Obsolescence Legal or other limits on the use of the asset For Video Lecture please click the below link https://www.youtube.com/watch?v=hUV_xnsTCHM&t=251s
Depreciable Amount
Depreciable Amount: It is the Cost of an asset or other amount substituted for cost, less its residual value /disposal value. Example: Suppose, Cost of an asset is $5,000.00 and its residual value is $500.00. Its depreciable amount will be 4,500/- For Video Lecture Please click the below link https://www.youtube.com/watch?v=hUV_xnsTCHM&t=251s
What is Depreciation?
Depreciation Depreciation means decrease in the value or decrease in efficiency of asset due to its use. Depreciation According to International Accounting Standard IAS-16 says, The term Depreciation means, the systematic allocation of the cost of a depreciable amount of an asset over its useful life . Goal of depreciation is to offset a reasonable portion of assets' cost against revenue in each period of the assets' useful life. Is Depreciation just an estimate ? The use of an estimated useful life is the major reason that depreciation expense is only an estimate. In most cases, the management does not know in advance how long the asset will remain in use. For Video lecture please click the blow link https://www.youtube.com/watch?v=hUV_xnsTCHM&t=251s
Definition of Asset
What is an Asset ? Resource that an entity control as a result of any past event or activity, and from which future economic benefits are expected to the such entity is called an asset. Depreciable Assets: (IAS-16) Items that are expected to be used during more than one period; and Are held for use on the production or supply of goods and services, for rental to other, or for administration purpose. Assets that retain their size and shape but they eventually wear out or become obsolete. These are not physically consumed, assets such as supplies, but however their economic useful life diminishes over time. Such assets include Plant, Buildings, Equipment, and Furniture & Fixture, same like that. Is Land a Depreciable Asset ? Land is not considered as depreciable asset because has unlimited useful life For video lecture please click the below link https://www.youtube.com/watch?v=hUV_xnsTCH...