Adjustment and Depreciation

0.2

0.24

0.02

0.25

fall in the market value of an asset

physical wear and tear

fall in the value of money

rise in the value of money

Principle

Original entry

Commission

Compensating

During the year the firm paid £3,400 for rent

The balance as at Dec 31 0x4 would appear on the balance sheet as a current liability

The annual charge for rent for 2004 is £2,400

At 1.1.20×4 the firm still owed treated Rent of £800 from the previous period

Errors made by bank

Credit transfers

Lodgments not yet credited by the bank

Presented cheques

Gain on loss = 0

Loss on sale = 0

Gain or loss on sale = 0

Gain > loss on sale

Debit = Expenses, Credit = Accrued expenses

Debit = Accrued expenses, Credit = Expenses

Debit = Cash, Credit = Accrued expenses

Debit = Expenses, Credit = Cash

Bad dept

Doubtful debt

Provision

Loss amount

reserve fund

compensation fund

Depreciation fund account

Workers fund

Physical deterioration

Depletion

Obsolescence

Amortization