MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Matching Concept

Charging the ...

Question

Charging the whole cost of asset in the first year itself is not correct. Why?

Open in App

Solution

Since, this is not in conformity with the matching principle which requires revenues for a given period to be matched against expenses for the said period.

Suggest Corrections

thumbs-up

3

Similar questions

Q. Life of an asset is 5 years, Purchase cost - Rs 5,70,000 Installation charges - Rs 30,000 Depreciation as per sum of years digit method for 4th year =_____.

In which of the following methods of charging depreciation, it is charged on Orginal cost of the asset?

Q. The original cost of the asset is Rs. 2,50,000. The useful life of the asset is 10 years and net residual value is estimated to be Rs. 50,000. Now, the amount of depreciation to be charged every year will be _________.

Why should power of variable and the variable itself should be a whole number not a natural number.

Q. The original cost of the asset is Rs. 6,00,000 and depreciation is charged @ 10% p.a. at written down value, then the amount of depreciation in 3rd year will be :

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Adjustments in Financial Statements

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Matching Concept

Standard XI Accountancy

Join BYJU'S Learning Program

CrossIcon