method of depreciation for the next year so as to avoid the loss. But, the accountant is hesitant to make the necessary changes suggested by his owner. Now, discuss on the following points: • Do you agree on the point that there is no need to charge depreciation when the company has made a loss? • Why does the accountant hesitate to make the changes suggested by his owner?
• What are the accounting principles not followed if the accountant agrees to his owner’s suggestion? • Do you think charging depreciation could be the only reason for the company’s loss? Reference . M C Shukla, T S Grewal and S C Gupta, Advanced Accounts, th ed., , S.Chand Publishing, New Delhi.
. R L Gupta and V K Gupta, Financial Accounting, th ed., , Sultan Chand and Sons, New Delhi. . S P Jain and K L Narang, Advanced Accountancy Vol – I, , Kalyani Publishers, New Delhi.
. Dalston L Cecil and Jenitra L Merwin, Financial Accounting, rd ed., , Learntech Press, Trichy. . Fundamentals of Accounting, , The Institute of Chartered Accountants of India, New Delhi.