Question

what is depreciation​

Answer 1

heya, buddy !!

➦In Accounts, Depreciation can be defined as the method of allocating the cost of a physical asset over its useful life or the time period it is to be used for. In simple words, depreciation is the reduction in the value of an asset due to the passage of time, normal wear and tear and obsolescence. Depreciation is generally regarded as a non-cash expenditure and helps companies to reduce their taxable income

We know that, The Depreciation Formula: Cost of Asset - Residual ValueUseful life of the asset

Depreciation rate formula: Amount of DepreciationOriginal Cost of the Asset

X 100

➦ The amount of depreciation decreases every year under this method. The diminishing depreciation method is calculated by the formula:

Depreciation, reducing balance method: Rate of Depreciation100

X Book Value

Calculation of depreciation rate under diminishing balance method: 1- (s/c)1n

X 100

Where s is the scrap value of the asset

c is the cost of the asset and n is the useful life of the asset.

Cheers !

Answer 2

$\mathtt\red{Question :-}$

★What is Depreciation ?

$\mathtt\red{Answer:-}$

Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its useful life or life expectancy. Depreciation represents how much of an asset's value has been used up.