DEPRICIATION


This query is : Resolved 

(Querist)
23 June 2011 Dear Sir,

Why we are doing depriciation.
And after dericiation the asset value is zero.and still we are using that asset.
where we can accounted.

24 June 2011 Hi, depreciation means spreading the cost of an asset over its estimated useful life. In other words, we can say it represents the part of the asset consumed during the year.
it is a period cost and hence debited to P/L a/c.
The life of the asset is initially estimated and supposed to be reviewed periodically (AS 6).If the life of asset is not revised then only its book value will become zero even when its life is remaining.
Regards, CA Shakuntala Chhangani


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