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Accumulated depreciation

Why accumulated deprecaition method is used , what are advantages , if accumulated deprecaition is used then in balancesheet cost of the asset is shown know then it will not reflect the true picture know


nisam M

nisam M

CA Foundation

9K+

02-Feb-21 00:00

18

Answers (5)

Accumulated depreciation is the sum of all recorded depreciation on an asset to a specific date. Accumulated depreciation is presented on the balance sheet just below the related capital asset line. Thus Asset value and Accumulated depreciation are disclosed together, thus reflecting overall correct picture


sudha reddy

sudha reddy

Moderator

02-Feb-21 07:37

Mam , what is the advantage of using ACCULATED DEPRECIATION OVER normal methode , is there any uses , in which manner it is beneficial


nisam M

nisam M

CA Foundation

9K+

02-Feb-21 12:47

Mam , what is the advantage of using ACCULATED DEPRECIATION OVER normal methode , is there any uses , in which manner it is beneficial

It would help the intrested users to know what was the value at which the original asset was bought.And the one who wants to know the net value can easily subtract the depreciation amount till date. Hope it was clear


Santosh pal

Santosh pal

CA Foundation

775

02-Feb-21 19:12

Mam , what is the advantage of using ACCULATED DEPRECIATION OVER normal methode , is there any uses , in which manner it is beneficial

Or else the balance sheet would have shown only the net value of the asset


Santosh pal

Santosh pal

CA Foundation

775

02-Feb-21 19:13