Asset example sentences

Discount on issue of debentures is a capital loss and is shown on the asset side of the balance sheet under the head “Miscellaneous Expenditure” till it is written-off.The capital account records all international purchases and sales of assets such as money, stocks, bonds, etc.Sometimes a company may purchase the assets as well as take over its liabilities of another concern.In case of the whole business being taken over if the amount of debentures issued is more than the amount of the net assets taken over, Its difference (excess) will be treated as value of goodwill and the same shall also be debited while passing the journal entry for the purchase of vender's business (see Illustration 10).Sometimes a company purchases assets from vendors and instead of making payment in cash issues debentures for consideration thereof.Every asset is bound to undergo some wear and tear, and hence lose value, once it is put to use in business.Sometimes a company purchases assets from vendors and instead of making payment in cash issues debentures for consideration thereof.Sometimes a company may purchase the assets as well as take over its liabilities of another concern.It can be turned into a productive asset by investment in human capital (for example, by spending resources on education and health for all, training of industrial and agricultural workers in the use of modern technology, useful scientific researches and so on).Depreciable cost of an asset is equal to its cost (as calculated in point 1 above) less net residual value (as calculated in point 2,) Hence, in the above example, the depreciable cost of machine is Rs.Proprietary ratio expresses relationship of proprietor s (shareholders) funds to net assets.Speculation: Exchange rates in the market depend not only on the demand and supply of exports and imports, and investment in assets, but also on foreign exchange speculation where foreign exchange is demanded for the possible gains from appreciation of the currency.Depreciation is allocated so as to charge fair proportion of depreciable amount in each accounting period during the expected useful life of the asset.In such a situation, the purchase consideration will be equal to the value of net assets and assets - liabilities) taken over, and if the whole amount of the consideration is paid by issue of debentures.The borrower is required to provide some security or create a charge on the assets of the firm before a loan is sanctioned by a commercial bank.