Answer / dipty

depreciation is charging of asset cost in your books over
the period of time with a predefined method.reason for
depreciation are wear & tear,loss,damage etc

Answer / ks

Depreciation means spread the cost of an asset over the
span of several years.

If you buy a machiner for 1 crore in April-10,you can not
treat it as expense for the month of April-10 since this
machinery is going to be used for next 10 years.

To match revenue and cost,1 crore will be divided across 10
years.


Its called depreciation

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