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What is depreciation and how many methods are using explain
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Answer Posted / sandip sharma
As Per Accounting Standard 6 there is only two types of method
1: Straight line method:- Assets value Rs 100 Dep. @ 10% P.A or life is 10 years then Dep p.a is Rs. 10
2: Reducing balance method:- Assets value Rs 100 Dep. @ 10% P.A then Dep for 1st Year is Rs. 10 For 2nd Year (100-10)x10% = Rs. 9 as on.
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