What is sinking fund method? - Accountancy | Shaalaa.com
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Q: “What is a sinking fund?” A: An account/fund that you can use to save money for specific expenses in the future. The goal is to save enough money to cover the expense so that it doesn’t disrupt your budget when it comes due. Example: Christmas. Saving up small amounts each week for the holidays in advance so that when it’s time to do your shopping the money is already available in full. | Baddies and Budgets
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Q: “What is a sinking fund?” A: An account/fund that you can use to save money for specific expenses in the future. The goal is to save enough money to cover the expense so that it doesn’t disrupt your budget when it comes due. Example: Christmas. Saving up small amounts each week for the holidays in advance so that when it’s time to do your shopping the money is already available in full. | Baddies and Budgets
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