Defination of Depreciation: "Reducing the Asste value indirectly in the form of cash". (Asste value will be reduced but the reduced value will be in invisible form. That is the resoan why we do not mention any CASH in depreciation entries). Jounal Entry of Depreciation: Depreciation of Asset     A/c....... Dr     xxxx           To Asset       A/c           xxxx Depreciation is calculated only on fixed assets expect Land & Buildings Types of Depreciations: Straight Line Depreciation Method Diminishing Balance Method Sum of Years’ Digits Method Double Declining Balance Method Sinking Fund Method Annuity Method Insurance Policy Method Discounted Cash Flow Method Use Based Method Output Method Working Hours Method Mileage Method Other Methods Depletion Method Revaluation Method Group or Composite Method

Posted By: T.