account

This query is : Resolved

Share Report Follow Query Ask a Query

anjali

anjali (Querist)
Follow

04 January 2010 meaning of depriciation?

Bhavesh

Bhavesh (Expert)
Follow

04 January 2010 Depreciation is a reflection of the loss value of an enduring asset over the period of its life time.

When we incur capital expenditure, we can't write it off in one year in the P and L Account because of the matching concept.

so the depreciation is calculated over the life term and that amount is debited to the P and L A/C>

E.g. A machinery purchased for Rs. 50,000. Life of 5 years.

So Rs.50,000 is not debited to P and L.

But Rs.10,000 (50,000/5) is debited to the P and L account each year for 5years as the revenues will be received for 5 years.

Heera Nahariya

Heera Nahariya (Expert)
Follow

04 January 2010 agree with the expert. It will clarify you better if you go through AS-6 issued by ICAI.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

04 January 2010 In simple terms, depreciation is the evaluation of the wear and tear of capital goods.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Sapan Kumar Nayak

S D Kannan

giriswar

Vivekanand Sagar

eddanapudi murali

Subscribe Now

account

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA