what is difference between depreciation and amortization ?
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Answer / mohd. nazar - kuwait
Depreciation is using on tangable assets, but amortization
is on intangable asset i.e. patient.
| Is This Answer Correct ? | 37 Yes | 7 No |
Answer / diana ann isaac
Depreciation is the process of allocating the cost of fixed
assets over the useful life of the asset in some reasonable
manner. When the fixed assets are purchased, they are
capitalized at the time of purchase, rather than expensed
and written off/depreciated over the years for which the
asset is being utilized.
Amortization is the process of writing off intangible
assets like patents, copyrights etc over the subsequent
years.
| Is This Answer Correct ? | 14 Yes | 1 No |
Answer / manish sharma
Depreciation: Depreciation is the value of fixed assets
which is utilised in to a company or any other entities for
a financial year. It is calculated as per income tax law
and as per company law.
Amortisation: Amortisation is the portion of preliminary
exp. or other capitalised exp. which is spread over a
period of years which is fixed by company law and others
time to time.
| Is This Answer Correct ? | 17 Yes | 9 No |
Answer / chandrasekhar
depreciation means the value gradually decrease on tangible
assets and amortization means the value gradually decrease
on intangible assets.
| Is This Answer Correct ? | 9 Yes | 4 No |
Answer / ankur parwal
Amortaization is used for writing of capital expenditures
that do not create any asset (Eg. repayment of debt, debt
amortaisation) or for deffered revenur expenses. is usually
for intangibles.
while
Depriciation is used to reduce the vale of the asset by the
amount by which it is used over the period. and is always
for a tangible asset.
| Is This Answer Correct ? | 3 Yes | 2 No |
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On 01-04-2006 Mr. Dhanpal started business with Rs.2,00,000 cash and opened a bank account with Rs.1,50,000. He purchased furniture for his business for Rs.25,000. Goods were bought from Deendayal for Rs.50,000 on credit. He sold goods for Rs.27,000 in cash and 30,000 on credit. He paid Rs. 2,500 for business expenses during April month. Rs. 10,000 was withdrawn for office purposes from the bank. Find out the closing balance of cash and bank.
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