Assets example sentences

Take all the fixed assets (not sold/discarded/or destroyed during the year) with additions (from the Receipts and Payments account) after charging depreciation (as per Income and Expenditure account) and show them on the assets side.Depreciation includes amortisation of assets whose useful life is pre-determined”.In general, the term “Depreciation” means decline in the value of a fixed assets due to use, passage of time or obsolescence.Purchase Consideration: Purchase consideration is amount paid by purchasing company in consideration for purchase of assets/business firm, another enterprise/vendor.Amortisation refers to writing-off the cost of intangible assets like patents, copyright, trade marks, franchises, leasehold mines which have entitlements to use for a specified period of time.The unwritten-off amount is shown on the assets side of the balance sheet under the head 'Miscellaneous Expenditure'.In some cases, business is required to mortgage its assets as security while obtaining funds from external sources.A lease arrangement may impose certain restrictions on the use of assets.Higher proportion of shareholders funds in financing the assets is a positive feature as it provides security to creditors.But the lending institutions may insist on some more assets as collateral security so that the amount of loan can be realised in full with the help of collateral security in case the amount from the sale of principal security should fall short of the loan money.The amount to be written-off annually is debited to the profit and loss account, and the balance is shown under the heading 'Miscellaneous expenditure' on the assets side of the balance sheet.Unsecured debentures do not have a specific a charge on the assets of the company.Sometimes a company purchases assets from vendors and instead of making payment in cash issues debentures for consideration thereof.The fixed charge is created against those assets which are held by a company for use in operations not meant for sale whereas floating charge involves all assets excluding those assigned to the secured creditors.Secured debentures refer to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default.