Why we do depreciation?What is the main object of Depreciation?
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Answer / bharadwaj
we do depreciation to show the exact value of an asset in
the balance sheet.
main object is to show the exact value as on date & it
helps for the purchase of new asset at the end of life of
the asset.
| Is This Answer Correct ? | 30 Yes | 6 No |
Answer / anvesh
depreciation means decreasing the value of an asset.
by continuous usage of an asset day by day its value
decreases.
the main objective of depreciation is to replace the old
machine or asset with new one
| Is This Answer Correct ? | 10 Yes | 2 No |
Answer / balu @factset
Depreciation is the gradual decrease of an asset.
Main motive of depreciation is showing exact value of the
asset in B/s.It will help to purchase of new asset Ofter
life time of asset.
| Is This Answer Correct ? | 9 Yes | 5 No |
Answer / sheena
depreciation is a revenue expenditure. we do depreciation
on fixed assets. To know exact value of an asset and to
show the exact value of asset in the balance sheet we do it.
| Is This Answer Correct ? | 5 Yes | 3 No |
Answer / kolluru venkatesh
We calculate the depreciation on fixed assets of the company due to using in day to day activities and it will treated as Revenue expenditure,
The main object of calculate depreciation on the assets is to know the face value of asset on the particular day to sale or to know the company position by preparing balance sheet
| Is This Answer Correct ? | 1 Yes | 4 No |
Answer / ashu
depriciation is done because by doing this co. have to pay
less tax on profit..
| Is This Answer Correct ? | 2 Yes | 10 No |
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