Question

why do we charge depreciation on non current assets?

Answer 1

Answer:

We charge depreciation on Non-Current Assets to find out the true profit or loss, to show the true and fair view of the financial position, to find out the accurate cost of production, to provide funds for replacement of assets, to prevent the distribution of profits out capital, to avoid over payment of income tax(More net profit means more income tax we have to pay.), etc.