Hi 10:04 im confused. Doesnt "full year dep in year of purchase but not in the year of sale" mean that you should also take the depreciation on the new purchase? Because it was not sold, and it can go upto year end. Cost $4200 - Depreciation (4200 × 20%) $840 = NBV $3360. [5 months from date of purchase 2021 1st January to 2021 31st May] This is not a critique btw! Far from it! Im still learning and i have some confusion Di. What is the reason why we didnt add this depreciation to it like this [12200-900-790 + 840]? Is it because it was a purchase? Or is it because depreciation of it would only be taken if it was sold??] Thanks so much.
Hii, you got the concept correct. But in this case, we're trying to figure out the depreciation for the purchased vehicle at the year end and it has been used for 5 months. But while calculating the depreciation, we cannot subtract the same depreciation of 840. Depreciation is calculated at the year end to reflect usage of the non current asset during the year. So you cannot possibly subtract the same usage while calculating the depreciation. Hope this helps you understand it better!
Thank you so much. Absolutely loved the way you explained this complicated question in such an easy manner! This cleared all the confusions I had on disposal. I wish you were my teacher🥲 Thank you again❤️
really very helpful
Glad you found it so!
Great work
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Thank you so much!
Mam yours videos are very helpful
Can you make more video on depreciation
Thank you! I have a playlist for questions on depreciation, that might help.
Hi
10:04 im confused. Doesnt "full year dep in year of purchase but not in the year of sale" mean that you should also take the depreciation on the new purchase?
Because it was not sold, and it can go upto year end.
Cost $4200 - Depreciation (4200 × 20%) $840 = NBV $3360. [5 months from date of purchase 2021 1st January to 2021 31st May]
This is not a critique btw! Far from it! Im still learning and i have some confusion Di.
What is the reason why we didnt add this depreciation to it like this [12200-900-790 + 840]?
Is it because it was a purchase? Or is it because depreciation of it would only be taken if it was sold??]
Thanks so much.
Hii, you got the concept correct. But in this case, we're trying to figure out the depreciation for the purchased vehicle at the year end and it has been used for 5 months. But while calculating the depreciation, we cannot subtract the same depreciation of 840. Depreciation is calculated at the year end to reflect usage of the non current asset during the year. So you cannot possibly subtract the same usage while calculating the depreciation. Hope this helps you understand it better!
@@studywithprashna I am also confused with it we should add acc dep of new plant and machinery that will be 840
I love u
U honestly helped me so so so much
Pl dont ever stop making these videos 😊😅
Glad to be of help!
Thank you so much. Absolutely loved the way you explained this complicated question in such an easy manner! This cleared all the confusions I had on disposal.
I wish you were my teacher🥲 Thank you again❤️
Glad it was helpful!