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HOSTING A TOTAL OF 318 FORMULAS WITH CALCULATORS

Depreciation

The goods and services provides to customers are obtained through the utilization of fixed assets during the operation process for a number of continuous accounting periods.As Fixed assets are used to generate periodic revenue,hence an appropriate amount of cost related to the fixed assets should be charged as an expense against the revenue generated by the use of fixed assets. The potion of the cost of fixed assets charged to profit &loss account during a particular accounting period is termed as depreciation.

The term depreciation denotes decrease in the value of asset but in terms of accounting it is referred as decrease in book value of assets. Depreciation is a permanent and continuous decrease in the book value of fixed assets due to use,effluxion of time,obsolescence etc.its is treated as non -cash expenditure

p-s e

p = purchase value, s = srap value and e = economic lift

ENTER THE VARIABLES TO BE USED IN THE FORMULA