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N. K. Gupta posted an Question
April 03, 2021 • 15:48 pm 30 points
  • UGC NET
  • Commerce

Please explain amortization and depletion easy define

please explain amortization and depletion easy define

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  • Rahul Best Answer

    The word amortization means written off..the fictitious assets are written off by the companies over a specified period of time.. because these expenditure are of huge amount and can't be recovered in future by selling these assets.. expenditure like patents right , copyrights , discount on issue of shares and peliminiary expenses are written off.. and these expenditure are written off every year from profit and loss account .. for ex - the amount of preliminiary expenses are 5000 and company decide to write off every year Rs1000. the rs 1000 will be shown in profit and loss account and remaining amount of 4000 will be shown in balancesheet at asset side..

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