Causes of Depreciation Video Lecture | Accountancy Class 11 - Commerce

causes of depreciation the causes of
depreciation our first is the use of the
asset the regular use of an asset leads
to it's the wear and tear second is the
efflux of time some assets have a
definite life period like a lease on the
expiry of the life period the asset will
cease to exist
other assets like motor vehicles may not
have a definite life period in their
case the life period is estimated third
as of solar sense of solace is the
decrease in the value of the asset due
to innovation or improve technique
change in taste of fashion etc for
example if a better car comes in the
market if a better car comes in the
market then the old cars may have to be
scrapped even though they are capable of
being used this leads to reduction of
useful life of the asset and the fourth
is accidents accidental loss may be
permanent but it is not continuing and
gradual