Why is it necessary to make …
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Posted by Zenith Vaish 5 years, 4 months ago
- 2 answers
Gaurav Seth 5 years, 4 months ago
Every year the amount of depreciation is transferred to depreciation reserve fund. The main rationale behind maintaining this reserve that at the time of replacing an exiting asset, the company must have sufficient funds to purchase new assets. One of the example of Depreciation Reserve is Machinery Replacement Reserve particularly maintain for acquiring a new machine (when an old machine wears out completely).
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Sonu Chand 5 years, 4 months ago
0Thank You