Depreciation is systematic allocation the cost of a fixed asset over its useful life. It is a way of matching the cost of a fixed asset with the revenue (or other economic benefits) depreciation accounting, the entire cost of a fixed asset will be recognized in the year of purchase
At 1 January vehicles have a balance of $90 000. On 1 April a further
vehicle is bought for $10 000. The vehicles are to be depreciated at 15
percent per annum, straight line. The accounting period ends on 30 June.
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Depreciation is systematic allocation the cost of a fixed asset over its useful life. It is a way of matching the cost of a fixed asset with the revenue (or other economic benefits) depreciation accounting, the entire cost of a fixed asset will be recognized in the year of purchase