Adjustment and Depreciation

Time factor

Obsolescence and inadequacy

Wear and tear

Money valuation

Plant and machinery

Building

Land

Equipment

Accumulated depreciation debit and depreciation expenses credit

Depreciation expenses debit and accumulated depreciation credit

Cash bed it and depreciation expenses credit

Depreciation expenses debit and cash credit

Purchase value

market value

written value

residual value

500000

505000

503000

495000

600

2000

300

400

log tables

Sinking fund tables

Annuity tables

Present value tables

Purchases of fixed assets were debited to the purchases account

A cheque received was entered on the debit side of the cash account

A credit sale to A Banter’s was entered on the credit side of A Banter’s account

Private expense were debited to the Business expenses account

Contra asset revenue

Accrued expenses

Accrued revenue

Unearned revenue

Market value

Scrap value

Market + Cost price

Cost