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Define depreciation
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Answer / nupur jain
Depriciation is a non-cash expenditure which is accounted for
in the P/L account to reduce the value of the fixed assets in
the books of accounts, so as to allot the wear and tear due to
the usage of the fixed asset. Please bear in mind that Land is
never depriciated.
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Answer / aamer
Decrease in value of an asset due to obsolescence or use.
depreciation can b done using STRAIGHT LINE METHOD or FIXED
INSTALMENT METHOD. Under straight line method depreciation
value changes every year where as in fixed instalment method
rate of depriciation remains the same every year.
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