Question

Sir please what is depreciation . state any two reason for providing depreciation

Answer 1

Answer:

Depreciation means reduction in amount.

Explanation:

I don't now the reasons

HOPE it HELPS you

Answer 2

Increase or decrease in the value of fixed asset due to wear and tear use or abuse on efflux of time is termed as depreciation......

Reasons.....

1) to present true balance sheet

Unless assets are depreciated their value in the balance sheet will be overstated....so balance sheet will not be a true representation of state of affairs and financial position of the business....

2) to pay less income tax

Depreciation is an allowable expensive under income tax act...so to enjoy paying less tax, depreciation must be given to asset.....