QUERIES
Dear friends?
pls let me know about amortisation? hows treated in accounts? term loan installments could we can consider as amortisation?
.
please give me detailed description about its with all related things
thx

9th June 2012 From Qatar ,

In financial accounting there is same accounting treatment for "Depreciation" and "Amortisation" and it generally means decrease in the value of asset through the passes of time. But the term "Depreciation" is used against "Tangible Assets" like building, furniture, machinery etc and "Amortisation" is used against "Intangible Assets" like patent, copyrights etc.
Depreciation is treated as an indirect expense and the accounting treatment of it
as follows:
(i) Depreciation A/c Dr. xxx
To Assets A/c xxx

(ii) Profit & Loss A/c
To Depreciation A/c
Term loan is a liability and hence decrease in amount of loan with each instalments does not mean amortisation in that sense what we explain it above.
12th June 2012 From India, Guwahati
Dear,
I wrote here some information about the amortisation , The total interest is calculated in advance and added to the Principal, then repaid by equal Instalment (Principal + Interest)
However, the method used for calculating the apportionment between Principal and Interest is different
The Principal and Interest is apportioned evenly over the loan period
Principal and Interest Amount is fixed
Ex
Instalment Amount =(Principal/No. of Instalment)+(Total Interest/No. of Instalment)
Thanks
25th July 2012 From Saudi Arabia, Riyadh
mr.kalyan, The capital expenditure spent on computer software is an asset and specific depreciation rate is provided under law.
9th June 2014 From India,
If opening stock $ 3000 closing stock $ 5000, sales $ 40000 and margin 20% then stock turn will be ?????
17th September 2014 From India , Pune
First of all find out margin amount from Amount of Sales That is 20% i.e. 6666.66 and balance is Cost of Sales 33333.34 Add 2000.00 increased in Closing stock Thus stock turn will be 35333.34
13th October 2016 From India , Morvi
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