Economy, asked by PragyaTbia, 1 year ago

Define depreciation.

Answers

Answered by kaalipavan
5

a reduction in the value of an asset over time, due in particular to wear and tear this decrease is measured as depreciation.

hope its helpfull brainliest please

Answered by PADMINI
5
Depreciation -


Depreciation mean a reduction in the value of an asset overtime. It is a non-cash expense that reduces the price of an asset. As time passes, the asset losses it's value known as "Depreciation".


For example - The cost of the machine is Rs - 1,54,000 and reduced by 20% for next year. find the Reduction price ?


Answer : Given : Cost of the machine = Rs 1,54,000

Percentage of reduction = 20% .


1,54,000 x 20%

1,54,000 x 20/100

= 30,800.

1,54,000 - 30,800

= 1,23,200.

Hence : The cost of the machine will be reduced to 1,23,200 .

Reduction price = 30,800.

Price of the Machine after reduction = 1,23,200.
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