Depreciation, Provisions and Reserves

Depreciation, Provisions and Reserves
 Depreciation:
 concept need and factors affecting depreciation
 Methods of computation of depreciation
 Straight line method
 Written down value method (excluding change in method)
 Accounting treatment of depreciation:
 By charging to asset account
 By creating provision for depreciation/ accumulated depreciation account
 Treatment of disposal of asset
 Provisions and reserves:
 Concept
 Objectives
 Difference between provisions and reserves
 Types of reserves:
 Revenue reserve
 Capital reserve
 General reserve
 Specific reserves