Dep
This query is : Resolved
01 January 2011
How does dep create funds for replacement of assets?
If one say that by creating accumulated depreciation account funds are created, i do not understand this logic.
By charging dep we may restricting some amount to be distributed as dividend but how are we creating cash for replacement of assets.
If one say that by creating accumulated depreciation account funds are created, i do not understand this logic.
By charging dep we may restricting some amount to be distributed as dividend but how are we creating cash for replacement of assets.
02 January 2011
booking the expenditure without making a payment. You can realease this fund for replacing of assets.
03 January 2011
But we have already paid for the original asset purchased, is it not just the booking of original payment.
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