Understanding Bookkeeping

At certain point of time, the company would want to dispose of some of its fixed assets either payable in cash or agree with the vendor to offset against the new fixed assets. Hence, the bookkeeper needs to understand how to treat these situation(s):- (more…)

Sometimes, some bookkeepers might not appreciate keeping the fixed asset register. Some might consider it as superfluous or too tedious. But maintaining a fixed asset register has many good advantages. (more…)

Basically, there are three (3) methods of doing computing depreciation for assets bought or sold during an accounting period: (more…)

The basic step before learning to understand the accounting treatment of depreciation is to ask ourselves what really is depreciation and what is the fuss of creating such a charge into the Income Statement. (more…)

For bookkeeping, we need to account for depreciation other the accounting profit would be distorted. We know that there are a few methods of accounting for depreciation, however the basic points we always need to consider are the following: (more…)

Below article relates to how to record depreciation. Basically, there are two (2) ways of recording depreciation: (more…)