Question

historical cost means (in accountancy)​

Answer 1

Answer:

Historical cost is a calculation of the value used in the accounting process, in which the asset's value on the balance sheet is reported at its original cost as purchased by the corporation.

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Answer 2

Answer:

Historical cost is the original cost for which an asset was purchased.

Explanation:

For example, Mr. A purchased a machine for Rs. 1,00,000 on 1 Apr 2015.

Let's assume he depreciated it @ 10% SLM. On 1 Apr 2020, the machine's book value comes out to be Rs. 50,000.

In this case, Rs. 1,00,000 is the historical cost of the asset.