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Lecture 5 End of year adjustments: Stock and Depreciation

Lecture 5 End of year adjustments: Stock and Depreciation. Lecture objectives. What are the end of period adjustments? Deal with opening and closing stock Explain alternative stock valuation methods. Define and explain the purposes of depreciation.

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Chapter 8 END OF YEAR ADJUSTMENTS

Chapter 8 END OF YEAR ADJUSTMENTS. Closing off Account. The balances of ALL expenses and income accounts are closed off to the Income Statement (Trading and Profit and Loss Account) at the end of the accounting period. Closing off Accounts. Closing off Account. Journal Entry.

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What is depreciation?

Depreciation is concerned with the value of an item of equipment after it has been in use for some time. People in business need to calculate these values for taxation and replacement purposes. What is depreciation?. Book value is the value of an item to a company.

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Reducing balance - PowerPoint PPT Presentation

Lecture 5 End of year adjustments: Stock and Depreciation

Chapter 8 END OF YEAR ADJUSTMENTS

What is depreciation?