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What do you mean by depreciation?

Answer Posted / nagaraju vuppala

depreciation is simply a method of allocating the cost of a tangible asset over the expected useful life of the asset. As a simple example, a machine that cost Rs1,00,000/- would depreciate at a rate of 10% per year

Depreciation Amount = Asset Value x Annual Percentage

Balance = Asset Value - Depreciation Value

, Generally we use Straight Line method

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