Accounting Treatment of Depreciation
Depreciation is systematic allocation the cost of a fixed asset over its …
Financial
Capital and Revenue Expenditure
Expenditure on fixed assets may be classified into Capital Expenditure and Revenue Expenditure. The distinction between …
Fixed Assets
Definition and Explanation Fixed assets, also known as Property, Plant and Equipment, …
Accounting for Inventory
Opening inventory is brought forward from the previous period’s ledger account and …
Average Cost Method (AVCO)
This method values inventory at the weighted average cost of all purchases. …
Last In First Out (LIFO)
This method assumes that inventory purchased last is sold first. Therefore, inventory …
First In First Out (FIFO)
Methods of calculating inventory cost As inventory is usually purchased at different …
Inventories
Definition Inventories are assets: (a) held for sale in the ordinary course …
Accounting for Petty Cash
Businesses generally keep small amounts of cash to meet small miscellaneous payments …
Accounting for Cash Transactions
Cash transactions are ones that are settled immediately in cash. Cash transactions …