Question

State briefly the Necessity of providing Depreciation.​

Answer 1

Explanation:

Need to Provide Depreciation

Depreciation needs to be provided because an asset is bound to undergo wear and tear over a period of time. This reduces the working capacity and effectiveness of the asset. ... The value of the asset will hence decrease over time and this must be accounted for.

Answer 2

Explanation:

Need to Provide Depreciation

Depreciation needs to be provided because an asset is bound to undergo wear and tear over a period of time. This reduces the working capacity and effectiveness of the asset. ... The value of the asset will hence decrease over time and this must be accounted for.