Taking all ______ assets with additions after charging depreciation and showing them on the assets side is one step adopted in preparation of balance sheet.

fixed

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current

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non-current

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tangible

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Solution

The correct option is A fixed
Balance sheet show the financial position of the business. All the assets and liabilities are recorded in it. Assets are of two types: fixed and current. Fixed assets are subject to depreciation. Fixed assets are recorded after deducting depreciation. Recorded fixed assets after charging depreciation and showing them on the assets side is one of the steps involved in preparation of balance sheet.

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Similar questions

Q. For charging depreciation, on which of the following assets, the depletion method is adopted?

Q. Depreciation is also charged on current assets.

Q. The Balance sheet will always reflect the _______ value of fixed assets after charging depreciation.

Q. On the basis of following information answer the following question.

The balance in accumulated depreciation account of a company at the beginning of year

2008 - 2009

was Rs

2, 00, 000

when the original cost of the assets amounted to Rs

10, 00, 000

. The company charges

10 %

depreciation on a SLM basis for all assets including those which have been either purchased or sold during the year. One such asset costing Rs.

5, 00, 000

which accumulated depreciation as at the beginning of the year of Rs

80, 000

was disposed off during the year.

The balance of the accumulated depreciation account at the end of the year considering the current year's depreciation charge would be ______________.

Following are the Balance Sheets of Krish Tech Ltd. for the year ended 31st March, 2012 and 2013 (Revised).
$\begin{matrix} Particulars & Note & Amount (Rs) & Amount (Rs) No. & 2012 - 13 & 2011 - 12 1. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital & 12, 00, 000 & 8, 00, 000 (b) Reserves and Surplus (Profit & Loss Balance) & 3, 50, 000 & 4, 00, 000 (2) Non-current liabilities Long term borrowings & 4, 40, 000 & 3, 50, 000 (3) Current liability : Trade Payables & 60, 000 & 50, 000 Total & 20, 50, 000 & 16, 00, 000 II. Assets (1) Non-current Assets (a) Fixed Assets (i) Tangible Assets & 12, 00, 000 & 9, 00, 000 (2) Current Assets (a) Inventories & 2, 00, 000 & 1, 00, 000 (b) Trade Receivables & 3, 10, 000 & 2, 30, 000 (c) Cash and cash equivalents & 3, 40, 000 & 3, 70, 000 Total & 20, 50, 000 & 16, 00, 000 \end{matrix}$

Prepare a Cash Flow Statement after taking into account the following adjustments.

(a) The company paid interest Rs 36,000 on its long-term borrowing.

(b) Depreciation charged on tangible fixed assets was Rs 1,20,000.

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