Tag: CALCULATING DEPRECIATION

O Level Notes : Accounts - Depreciation

zimsake Aug 29, 2021 0 839

Fixed assets such as buildings, machinery ,etc do not last forever. When the amount received by disposal of a fixed asset is deducted from the cost of purchasing it, the difference is known as depreciation. Depreciation is the price we pay for using the fixed asset over time. E.g a van was bought for $5000 and used for 5 years. It was sold for $1000. That is to say its value had depreciated by $4000 over 5 years.

Tag: CALCULATING DEPRECIATION

O Level Notes : Accounts - Depreciation

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