The following are the different methods of providing depreciation:
(i) Straight line method or Fixed instalment method or Original cost method
(ii) Written down value method or Diminishing balance method
(iii) Sum of years of digits method
(iv) Machine hour rate method
(v) Depletion method
(vi) Annuity method
(vii) Revaluation method
(viii) Sinking fund method
(ix) Insurance policy method

i) The effect of heavy advertisement expenses will extend to more than one accounting period, but it does not create any property of tangible or intangible nature and hence it is deferred revenue expenditure.
ii) It is a capital expenditure since it is incurred up to the point the machine is ready for use.
iii) These are capital expenditures since they are incurred up to the point the machine is ready for use.

(a) Rent received account is to be credited with Rs. 900
(b) Rent received account is to be debited with Rs. 1,000
(c) Salary account is to be debited with Rs. 1,100
(d) Salary account is to be credited with Rs. 1,200

(i) If entry in the cash book matches with the bank statement, then bank balance will be the same in both the records.
(ii) But, practically it may not be possible. When the balances do not agree with each other, the need for preparing a statement to explain the causes arises. This statement is called bank reconciliation statement (BRS).

(i) Source documents are the authentic financial evidence of transactions. These documents show the nature of transaction, the date, the amount and the parties involved.
(ii) Source documents include cash receipt, invoice, debit note, credit note, pay-in-slip, salary bills, wage bills, counterfoils of cheques and any other form of written document proof.

(i) At the end of the accounting year, all nominal accounts are closed but the business has to be carried on with previous year's assets and liabilities.
(ii) Journal entry made in the beginning of the current year with the balances of assets and liabilities of the previous year is opening journal entry.

(i) Ledger is known as Principal book of accounts because it is very useful for a business enterprise.
(ii) It is a book which contains all sets of accounts, namely, personal, real and nominal accounts
(iii) Account-wise balance can be determined from the ledger.
(iv) The ledger accounts are opened or maintained based on journal entries passed.

(i) Accounting concepts are the basic assumptions or conditions upon which accounting has been laid.
(ii) Accounting concepts are the results of broad consensus.
(iii) The word concept means a notion or abstraction which is generally accepted.
(iv) Accounting concepts provide unifying structure to the accounting process and accounting reports.

The Steps involved in accounting are :
(i) Identifying the transactions and Journalising.
(ii) Posting and Balancing.
(iii) Preparation of Trial Balance.
(iv) Preparation of Trading Account.
(v) Preparation of Profit and Loss Account.
(vi) Preparation of Balance Sheet.

1) Sundry debtors - Debit
2) Creditors - Credit
3) Cash in hand - Debit
4) Bank overdraft - Credit
5) Salary - Debit
6) Discount allowed - Debit
7) Plant and machinery - Debit
8) Furniture - Debit