"Depreciation is provided to not only cover capital expenditure during the span ofAssets life, but also to accumulate required funds for the replacement of the PPE" Explain thisstatement. Also differentiate two popular method of depreciation with suitable figures.1."A systematic procedure has been adopted for the issue of Accounting Standard inIndia" Justify this statement.2. Bombay Okara Corporation Ltd. Purchased on 1" January 2015 from Delhi Motors fivetrucks costing Rs. 50,000 cach on the hire purchase system. The payment was to be made as:10% of cash price down and 25% of cash price at the end of four subsequent half years. Thepayment due on 31ª December 2015 could not be made and hence the trucks were by the4.vendor.But after negotiation, the hire purchaser was allowed to keep three trucks on the conditionthat the value of the other two trucks would be adjusted against the amount due, the truckbeing valued at cost less 25% depreciation. Bombay Corporation closed its books on 30 June

Since there are multiple parts in this question only the first part will be answered. The capital…

"Depreciation is provided to not only cover capital expenditure during the span of Assets life, but also to accumulate required funds for the replacement of the PPE" Explain this statement. Also differentiate two popular method of depreciation with suitable figures. 1.

"Depreciation is provided to not only cover capital expenditure during the span of Assets life, but also to accumulate required funds for the replacement of the PPE" Explain this statement. Also differentiate two popular method of depreciation with suitable figures. 1.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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