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As we all know Final Accounts require some essential adjustments. Without adjustments, the final statement does not depict truth about business. The main section which needs adjustment is Depreciation value of assets.
Basic concepts about depreciation:
It is the measure of wearing out, consumption, which leads to loss of value of a depreciable asset.
Objectives for calculating depreciation:
Calculation the Depreciation value of the asset:
Three fundamental facts are considered for calculation;
Formula to calculate:
Estimated useful life
Methods for calculating:
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