Depreciation is always charged on the depreciable assets only.... books and teachers are teaching wrong actually.. that.. depreciation is charged on fixed assets.... but it is not true....
Depreciation is always charged on fixed tangible assets which are depreciable...Assets which decrease their value because of their use, accident etc..
for example, plant, machinery, motor vehicles etc...
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Tangible fixed assets with an infinite life such as land do not need to be depreciated.
Land is the only fixed asset which is not depreciated because land never depreciates or wear and tear occur rather it always appreciates.
Land cannot be depreciated.
land
Fixed assets are the assets of business concern. The value of these assets, except land, gets depreciated year by year and the allowance of such depreciation is availed for tax exemption purposes on a regular basis. When such the assets are sold for a consideration, it is called the "sale of fixed assets" and the gain / loss on sale of such assets is assessed based on the written down value as on the date of such transaction.
Fixed assets are the assets of business concern. The value of these assets, except land, gets depreciated year by year and the allowance of such depreciation is availed for tax exemption purposes on a regular basis. When such the assets are sold for a consideration, it is called the "sale of fixed assets" and the gain / loss on sale of such assets is assessed based on the written down value as on the date of such transaction.
Tangible assets normally are long term capital assets, but could be short term. Some long term tangible assets can be depreciated while others can not. For example a building or piece of equipment is a tangible long term asset that can be depreciated for financial and tax purposes. Land is also a tangible asset, but can not be depreciated.
Tangible assets normally are long term capital assets, but could be short term. Some long term tangible assets can be depreciated while others can not. For example a building or piece of equipment is a tangible long term asset that can be depreciated for financial and tax purposes. Land is also a tangible asset, but can not be depreciated.
The difference between current assets and fixed assets as follows: Current assets are flexible in nature, easy to encashable and floating money to company. Fixed assets are fixed in nature in other words non-moving assets, not easy to encash, and are regularly depreciated. Classification: Current assets: Cash - at hand and at bank Inventories Sundry Debtors Advance and Deposits Fixed Assets: Land and Building Furniture and Fittings Tools and tackles Plant and Machinery Computer (including assessories and UPS)
Land is the only fixed asset which has no depreciation charge because land does not depreciate it's value.
Unlike air travel, they need a fixed land path. Unlike trucking, they need a fixed land path.
Land as a factor of production is a free gift of nature and is fixed.