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Depreciation
Depreciation is the fall in the value of fixed assets over a period of time.
Adjustment Entries
| Depreciation Account | Dr. | |
| Assets Account | ||
| (Being depreciation charged) | ||
Accounting Treatment
Depreciation amount is entered as expense on the Debit Side of Profit and Loss account.
Depreciation is deducted from the value of the concerned asset in the Balance Sheet.
