Depreciation meaning :
In general words ,depreciation is the reductioassets across its useful life ,roughly corresponding to normal wear
and tear.
n in the value of an assets
due to usages , passage of time, wear and tear, technological outdating or
obsolescence ,depletion or other such factors. In accounting , depreciation is a term used to describe any method of
attributing the historical or purchase cost of an
Causes of depreciation
- Wear and tear
- Depletion
- Obsolescence
- Exhaustion
- Effluxion of time
Objectives of providing
depreciation
To calculate proper profit
To show the assets as its real value
To replace the assets
To reduce tax liability
To ascertain accurate cost of production
