''DEPRECIATION''     


The gradually decrease in the value of an assets is called depreciation.


There are two types of depreciation

1. fixed base method/ original cost method
2. written down method

First of all i want to explain to the fixed based method in which method the depreciation is fixed and charge on the original value of an assets that's why this method  is called fixed base method

The 2nd  method is written down value method in which method depreciation is charged on the book value (original value - depreciation) of an assets.

Explanation of this picture

This picture shows that's when assets are purchased then he his performance or market value in highest position but with the passage of time or the use of assets in business the value of assets are decreased and few place where the value of the assets are increase instead of decreased this position is called appreciation of an assets.Appreciation is the process when the value of an assets is increased instead of decreased.

  

'Accelerated Depreciation'

This also the method of depreciation which is used in accounting and income tax purpose

 ''Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years of the life of an asset''.