Was there anything that surprised you about capital assets and how they are used in business/accounted for ? Well according to me, Capital assets are the assets that will be beneficial to our business over a long period of time. Capital assets are also called "fixed assets". For organization, a capital asset is an asset with a useful life longer more than a year that is not intended for sale in the regular course of the business's operation. Capital assets are the assets which generates income of a business after some usage year. For example, if a company buys a furniture to use in its office, the furniture is called an capital asset and if a company sells furniture after long time use like one year or more thus, the capital assets generates revenue of a business after selling the furniture as an capital asset. Although there are two types of assets. The first one is Long-term assets, which includes purchase price, commission, closing costs (survey, legal, registeration, title and transfer fees), property including taxes, the cost of grading & clearing the land and demotion of unwanted existing development. Although, advertising sign is not an asset because after purchasing a property a sign does not value anything. However, short-term assets are the assets which are not used for long term purpose like cash, short term investment, inventories etc. Short term assets are also known as current assets. What were your experiences with trying the three different depreciation methods? Are there tips you wish to share with other learners? It was really good experience for me to understand three types of depreciation methods. First of all, depreciation is known as deduction is total value assets after some time. The value of assets decreased according to time and usage of an asset. Method of Deprication:- 1st one is Straight Line Depreciation Method:- In this method cost of asset is deducted from Salvage value and the remained amount is divided by estimated useful life in years. Formula:- Straight line depreciation = cost- Salvage value / useful life in years 2nd one is Units Of Production Method:- In this method we have to calculate percentage of per unit cost of production by applying formula. Formula:- Unit of Production depreciation per unit = Cost - Salvage value /useful life in units of production 3rd one is Double Declining Balance:- In this method first of all, we have to determine the useful life i.e, 4 years. Put useful life into a fraction i.e, 1/2 . Now double the fraction 1/2x2 . Multiply this fraction above by asset book value to determine depreciation amount. These are the methods which are used to evulate the actual price of current assets in particular years.

Conclude it and explain how different types of depreciation methods are useful and what tips and techniques need to be taken care while calculating depreciation value.