About Depreciation



is it compulsory to charge depreciation on assets?
 
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"Do the Right Thing...!!!"

Yes...
 
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why
 
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to arrive at the true book value of the asset. the value of the asset keeps on decreasing yoy because of its use.hence dep shud be charged to know it's correct value.
 
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Practicing CA

in terms of section 32 explanation 5 it is compulsory. 

You can not charge cost of asset to expenses  on the date of acquisition itself in terms of matching concept of accounting as well


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"Do the Right Thing...!!!"

I agreed to Mr CA Mayur Todmal..
 
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refer as 10

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