Question

बिट
ल-चूक खात का राशि
117. ह्रास का क्या आशय है? ह्रास के लिए प्रबंध करना क्यों आवश्यक है?
(What is depreciation ? Why arrangement is needed for depreciation ?
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Answer 1

Answer:

definition:-

The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. Machinery, equipment, currency are some examples of assets that are likely to depreciate over a specific period of time

Arrangements:-

Depreciation needs to be provided because an asset is bound to undergo wear and tear over a period of time. This reduces the working capacity and effectiveness of the asset. Hence, this should reflect the value of the asset, at which it is carried in the books of accounts.

Also, every asset becomes obsolete over a period of time, as new technology and innovation take over. The value of the asset will hence decrease over time and this must be accounted for.