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Answer Posted / chandana
Depreciation means a gradual decrease or demultion or
reduction in the value of the assets.It occurs due to wear
and tear, accidents, Obsolecense. So it is a loss to the
business and therefore it is treated as an indirect expense
and credited to the profit and loss account. It is deducted
from the concerned assets and the remaining balance is
shown on the asset side of the balance sheet.
| Is This Answer Correct ? | 7 Yes | 2 No |
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