What Are Depreciating Assets
Those Assets which are depreciated and these assets have Limited Useful due to the constant use in the daily business operations. Examples, are Furniture, Motor Vehicles, Machinery, Office Equipment Like Computers, Telephones / Mobile Phones, Fans etc., Explanation: Depreciating Assets have Limited Useful Life i.e., 1 To 2 Years or withi n 5 Years Depending upon the Nature of the Assets, e.g., Furniture may have more Useful Life as compare to Motor Vehicles. These Assets are separated from Land, Property And Buildings as these are not so much used, so having Long Useful Life as compared to Furniture, Motor Vehicles, etc. You Can Also Read Out, “ Disposable of Depreciable Assets ” For Example, If the Motor Vehicle Costing Rs. 6200, having Residual Value 200 Useful Life of 2 Years, then, the Straight Line Depreciation on Motor Vehicle is recorded in the Journal / Book of Entrepreneur as shown below: Depreciation Expense - Mot...