DEPRECIATION IS NOT CHARGED ON ________.
FURNITURE.
MACHINERY.
PLANT.
GOODWILL.
Answers
Answer:
✍✍
ANSWER:
GOODWILL✔✔
Depriciation is not charged on Goodwill.
Depriciation is the normal wear and tear in the value of fixed asset, it can also be termed as the loss which is occured due to use of that asset.
As Furniture , Machinery , Plant is our fixed asset and they will be depreciated with the usage.
Goodwill is intangible asset , it projects the prestige of an organisation which is established by its business owner, so goodwill can not be depreciated .
Depreciation is of two types Straight Line Method and Diminishing Balance Method .
Straight Line Method is a method in which depreciation is charged on the asset on the value of purchase of goods, it is same every year.
Diminishing Balance Method is a method in which asset is depreciated and everytime depreciation is charged on the depreciated value of asset, it changes every year.