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Entrepreneurship Development and Small Business Enterprises by Pearson
book

Entrepreneurship Development and Small Business Enterprises by Pearson

by Poomima M Charantimath
May 2024
Intermediate to advanced content levelIntermediate to advanced
540 pages
27h 7m
English
Pearson India
Content preview from Entrepreneurship Development and Small Business Enterprises by Pearson
Entrepreneurship
Developmem and
SmaU
Business Enterprises
Which method ought to
be
adopted will depend on the expected wear and tear
pattern
of
the asset. The two m
et
hods described above have different depreciation
charges annually; the straight line method has high charges
in
the earlier years
of
the
assel's life and the reducing balance melhod has low charges
in
the
lat
er years.
EXHIBIT 9,10 Reducing Balance Method
of
Depreciation Adjustment
Years
2 3
4
5
Opening balance 10,000 6,000
3,600
2.t60
1.296
Less depreciation (shown
in
P&L alc) 4,000
2.400 1.440
664
516
Balance (value
in
each vear's balance sheel) 6,000
3,600 2,160
1
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Publisher Resources

ISBN: 9781299601086