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clarification doubt
Accountancy
normally we will say DEPRECIATION is a non cash item in the books of acc..... But *** what is the logic.... why the reason is behind can any one explain me bec... i donot know ( if possible means can you give any example for that ..........................plssss.. tq...
Answers (5)
depreciation is a non cash item because whenever you are calulating or diducting the depreciation you will not diduct any thing from your bank or cash in hand it will be diducted from the value of thing that you are depreciating. example : depreciate the furniture by 10% if the cost of the furnitute is 10000 then we will diduct 1000(10% of 10000) in furniture a/c not in cash or bank a/c. it is only related to furniture that is Depreciation A/C dr 1000 . to Furniture A/C 1000
Niranjan Bhat
depreciation is a non cash item because whenever you are calulating or diducting the depreciation you will not diduct any thing from your bank or cash in hand it will be diducted from the value of thing that you are depreciating. example : depreciate the furniture by 10% if the cost of the furnitute is 10000 then we will diduct 1000(10% of 10000) in furniture a/c not in cash or bank a/c. it is only related to furniture that is Depreciation A/C dr 1000 . to Furniture A/C 1000
Tq. So so much my friend ....... Then dep.... Is calculated only on fixed asset am I right bro.........
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