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Depreciation ampunt rteg

146 views 2 replies
Dear Experts,

1, P&L is calculated after deducting the Depreciation.

2. This P&L will be transferred into Capital account or Reserve & Surplus.

3. My query :
Where this much amount depreciation will go such as cash or something else
Replies (2)
Depreciation is non cash expenditure it will reduce the assets balance in the balance sheet
Payment should have gone already to buy the PPE . So it is not allowed as deduction at the time of purchase and As per AS-10 PPE it's allowed partly and not fully over the useful life


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