DEPRECIATION

The word depreciation means the expired cost of tangible assets depreciation used in accounting does mot mean the physical deterioration of an assets neither does depreciation means the decrease in market value of a plant assets over a period of time.depreciation means the allocation of the cost of plant assets to the period in which services are receivable from the assets.when an intangible assets is purchased its cost is firstly recorded as an assets the cost becomes expenses over the life period through the accounting process of depreciation.A separate depreciation expense account and a separate accumulated depreciation account contra assets is generally maintained for each group of depreciate assets such as factory,building,delivery, truck, equipments,and furniture etc.so that a proper allocation of depreciation expense can be made.