On 1.1.2019 Dhofar company bought the car for OMR 15000. The expected useful life of the car is 5 years. The Adjusting entry of depreciation is Select one: a. Date Particulars Debit (OMR) Credit (OMR) 31 .12 Accumulated depreciation Depreciation Expense 5000 5000 b. Date Particulars Debit (OMR) Credit (OMR) 31 .12 Accumulated depreciation Depreciation Expense 15000 15000 c. Date Particulars Debit (OMR) Credit (OMR) 31 .12 Depreciation Expense Accumulated depreciation 15000 15000 d. Date Particulars Debit (OMR) Credit (OMR) 31 .12 Depreciation Expense Accumulated depreciation 3000 3000
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Q1 On 1.1.2019 Dhofar company bought the car for OMR 15000. The expected useful life of the car is 5 years. The
| Date | Particulars | Debit (OMR) | Credit (OMR) |
| 31 .12 | Depreciation Expense |
5000 |
5000 |
| Date | Particulars | Debit (OMR) | Credit (OMR) |
| 31 .12 | Accumulated depreciation Depreciation Expense |
15000 |
15000 |
| Date | Particulars | Debit (OMR) | Credit (OMR) |
| 31 .12 | Depreciation Expense Accumulated depreciation |
15000 |
15000 |
| Date | Particulars |
Debit (OMR) |
Credit (OMR) |
| 31 .12 | Depreciation Expense Accumulated depreciation |
3000 |
3000 |
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