Depreciation
DEPRECIATION
DEPRECIATION
Depreciation refers as the actual
decrease in value of an asset, such as the decrease in value of an asset on each
year due to wear and tear of an asset.
BOOK VALUE
Book value can also represent the value
of a particular asset on the company's balance sheet after taking accumulated
depreciation into account.
METHODS OF DEPRECIATION
There
are several methods of accounting depreciation fund. These are as follows:
Straight
line method of depreciation
Declining
balance method of depreciation
Sum
of the years—digits method of depreciation
Sinking-fund
method of depreciation
Service output method of
depreciation
