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Concepts · CA Foundation/Principles & Practice of Accounting

Principles & Practice of Accounting

Ch 3 · Depreciation Accounting

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

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Concept
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Chart Summary
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Formula Sheet
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Important 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.

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