How to create Deprecation Accounts on Tally
Introduction : Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used toaccount for declines in value. Businesses depreciate long-term assets for both tax and accounting purposes. Types : There are two types of deprecation Method in Accounts : Frist method is Fixed installment method And 2nd Demonizing balance method 1. What is Fixed installment method ? When you purchase any kind of Fixed Assets like Furniture . Then Depreciation Value will be same on every year Example : On 1st April 2016 Furniture purchase Value is ₹200000 and Depreciation Was 10 % p.a . Then on 31. 03. 2016 Deprecation value was ( ₹200000 * 10 / 100) = ₹ 20000 and Furniture value as on 01.04.2017 was ( ₹ 200000 - ₹ 20000) = ₹ 180000 but the next year on 31.03.2017 Deprecatipn value not chang and The value was ₹ 20000 and as on 01.04. 2018 Furniture value will be ( ₹ 1800000 - ₹ 20000) = ₹ 16000...