Ch 3 · Depreciation Accounting

5 concept points · 4 formulas · 4 exam-critical points.

⭐ Important points (exam-critical)

• ⭐Sinking fund method involves investment of annual provision outside the business.
• ⭐Schedule II of Companies Act 2013 prescribes useful lives — not rates.
• ⭐On revaluation upward: surplus to Revaluation Reserve; depreciation on revalued amount.
• ⭐8-mark sum: Asset Disposal A/c with multiple purchases / part-year depreciation.