5. Depreciation for bad DebtsDepreciation of assets refers to the systematic allocation of the cost of a tangible asset over its useful life. Tangible assets, such as buildings, machinery,vehicles, and equipment, are subject to depreciation because they gradually lose value or usefulness over time due to wear and tear, obsolescence, or other factors.6. Intrest on CapitalInterest on capital and owner's salaries are both components of a company's expenses or distributions to its owners, but they serve different purposes:1. Interest on Capital:- Interest on capital refers to the interest paid to the owners or partners of a business for the use of their invested capital.- In a partnership or proprietorship, partners or the proprietor contribute capital to the business, which is used to finance its operations.- The business may agree to pay interest to the partners or proprietor for using their capital. This interest is typically calculated based on theagreed-upon rate and the amount of capital invested.7. Intrest on DrawingsInterest on drawings refers to the interest charged on funds withdrawn by a partner or owner from the business for personal use. In a partnership orsole proprietorship, partners or the proprietor may withdraw money from the business for personal expenses or investments.The purpose of charging interest on drawings is to recognize the cost incurred by the business when funds are taken out, similar to the cost of borrowingmoney from an external source. Charging interest encourages partners or owners to minimize withdrawals8. Provision for discountsThe provision for discount on debtors is an accounting entry made to reflect the estimated amount of discounts that a company expects to give to its customers who pay their invoices promptly. It's a provision set aside to account for potential discounts that may be claimed by customers for early payment of their outstanding invoices.Provision for bad debts refers to setting aside funds in anticipation of some customers failing to pay their debts. This is typically done to ensure that a company's financial statements accurately reflect the amount of revenue expected to be collected. It's a precautionary measure to account for the risk of non-payment and to maintain the accuracy of financial reporting.