12 November 2008
when we provide depreciation for assets actually no cash is going outside.but we debit in p n l ac and reduce the amt from particular asset. so the balance sheet agreeing . but wat happens when the cash is not really going outside like other expenses?
13 November 2008
Depreciation is the evaluation of the wear and tear of capital goods. It is provided in the accounts since it is a non cash expenditure. Moreover law also says depreciation is to be provided compulsorily in the accounts.
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