(1)It brings down your
profit
profit
(2)It helps you to
construct the principle of double entry.
construct the principle of double entry.
Causes
of Depreciation
of Depreciation
(1)Where there is wear
and tear of the asset
and tear of the asset
(2) Obsolescence
(3)Passage of time
(4)Fluctuation in prices
(5)Physical factors such
as dampness, flood e .t .c
as dampness, flood e .t .c
NOTE
For you to know how to
calculate depreciation, you must
calculate depreciation, you must
(1)Know the original
price of the goods
price of the goods
(2)Receiver value, know
the % of the goods
the % of the goods
(3)Know the life span of
the asset.
the asset.