HELLO FRIENDS,Sometimes,the firms instead of reducing the value of the asset to the extent of its depreciation amount,open a new account "PROVISION FOR DEPRECIATION"?

WHY do they adopt this method and what is its significance or advantages?why don't they credit the asset account to the extent of its depreciation?
-thanking you in advance...

Dear Experts

How many ways to rectify negative cash balance, Suppose negative cash balance rs 1000000 in 2010-11 financial year. how to rectify, still i am not filing returns to dept

Dear Experts,


We are in to trading business of health care product, like Electric Massager Etc.

We sale product to individual customer and we provide a warranty on the product. after the usage of product some time they find out the any electric problem or some other problem on the same. we repaired but we charges the fees from them.My question is this income should be Indirect Income or Direct Income please explain

Please help me out for this problem
" The share of a chemical company are selling at Rs. 20 per share. The firm had paid dividend at Rs. 2 per share last year. The estimated growth of company is approximately 5% per year. Determine the cost of equity capital of the company. "
Thanks in advance....

We have taken a car for loan basis. I want the entries to be made.

Car value - Rs.16,00,000-00
Down payment we have paid to showroom - Rs.4,00,000-00
Loan From Fiance Co - Rs.12,00,000-00

We have also paid processing fee Rs.14,000/- to Finance company and one installment of Rs.39000/-.
Please how I have to make the entries in the books of accounts. Please give individual entries and reply

What is the criteria for making cash flow statement i.e., i wish to know that which type of companies have to prepare cash flow statement mandatorily? Is there any turnover limit or other thing? Please give expert opinion.

Hi one of my branches have negative cash at month closing very often in branch petty cash ledger. So before audit I want to adjust and make it positive. So can you advise how to proceed in right direction. We generally send cheque to branch and receive vouchers.

Dear friends,

please explain about methods of preparing account current.

what is the accounting entry for stock demo samples given, or damages ?

Respected Sir/madam,

I've a query regarding depreciation.
Why there is no uniformity in depreciation on assets? for eg.Building-5% & 10%, furniture-10% ,Machinery-15% & etc., & can we claim depreciation. Please explain me in this regard.

Thanking you
your's reply anticipator

Ajay