Question

explain the causes of depreciation? in 50 words​

Answer 1

Answer:

The causes of depreciation are: Wear and tear. Any asset will gradually break down over a certain usage period, as parts wear out and need to be replaced. ... Other assets, such as buildings, can be repaired and upgraded for long periods of time.

Answer 2

Answer:

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DEPRECIATION FUND METHOD

The amount of depreciation is credited to an account called Sinking Fund or Depreciation Fund account which is shown on the liabilities side of the balance sheet. This amount is invested in securities. Every year the amount set aside for depreciation along with the interest is again invested