Answer Posted / vinotha.v

the assets value year to year reduce the value (ie)
depreciation.

EX. Machinery value Rs. 10000/-
Depreciation @ 10%

Calculation of Depreciation:

Machinery value 10000

Less: Depreciation 10000*10% 1000
_______

Machinery original value: 9000
_______


Depreciation value = Rs.1000/-.

So The machinery value year to year to change.

ie Next year calculated the depreciation Rs.9000/-
(machinery).

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