Depreciation
Definition
Allocation of the cost of a tangible fixed asset over its useful life due to wear and tear, efflux of time, or obsolescence.
Example
"A machine bought for ₹1 Lakh reducing in book value by 10% every year."
Allocation of the cost of a tangible fixed asset over its useful life due to wear and tear, efflux of time, or obsolescence.
"A machine bought for ₹1 Lakh reducing in book value by 10% every year."