Method of Providing Depreciation The sinking fund method is a technique for depreciating an asset while generating enough money to replace it at the end of its useful life. As depreciation charges are incurred to reflect the asset's falling value, a matching amount of cash is invested. These funds sit in a sinking fund account and generate interest. #MethodofProvidingDepreciation

CONCEPT AND ACCOUNTING OF DEPRECIATION Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its useful life or life expectancy. Depreciation represents how much of an asset's value has been used up. #CONCEPTANDACCOUNTINGOFDEPRECIATION

BANK RECONCILIATION STATEMENT BRS is prepared on a periodical basis for checking that bank related transactions are recorded properly in cash book's bank column and also by the bank in their books. BRS helps to detect errors in recording transactions and determining the exact bank balance as on a specified date. #BANKRECONCILIATIONSTATEMENT

SUSPENSE ACCOUNT A suspense account is an account used temporarily or permanently to carry doubtful entries and discrepancies pending their analysis and permanent classification. It can be a repository for monetary transactions entered with invalid account numbers. The account specified may not exist, or it may be deleted/frozen. #SUSPENSEACCOUNT

RECTIFICATION OF ERRORS Financial accounting deals with recording and maintaining every monetary transaction of an organization. However, sometimes, a few entries might be either incorrect or used at the wrong place. In financial accounting, the process of correcting such mistakes is known as Rectification of Errors. #RECTIFICATIONOFERRORS

RECTIFICATION OF ERRORS Financial accounting deals with recording and maintaining every monetary transaction of an organization. However, sometimes, a few entries might be either incorrect or used at the wrong place. In financial accounting, the process of correcting such mistakes is known as Rectification of Errors. #RECTIFICATIONOFERRORS

Distinction between Special Journal and General Journal Special journals and general journal are both books of prime entry which are used to record the transactions of a business. ... In special journals all the transactions are recorded in the form of single line entry whereas in general journal all the transactions are recorded in the form of two or more line entries. #DistinctionbetweenSpecialJournalandGeneralJournal

SALES RETURN BOOK OR RETURNS INWARD BOOK Definition and Explanation: Sales returns book is also called returns inwards book. It is used for recording goods returned to us by our customers.4 #SALESRETURNBOOKORRETURNSINWARDBOOK