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Answer Posted / 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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