Module 1: Balance day adjustments in the general journal and ledger

XSIQ
*

Accounting - Reporting

Reporting

In the Profit and Loss statement depreciation of vehicle may be classified
under selling, delivery or vehicle expense.

In the balance sheet (extract):

Motor vehicles
100 000

- Accumulated depreciation of vehicles
17 125

82 875

A possible question may be as to why the straight line method of
depreciation was used.

* the asset contributed equally to revenue in each period.

* the staight line method is simple to operate.

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