Video narration
Depreciation ka simple matlab hai: fixed asset ki cost ko uski useful life mein systematically spread karna. Asset jaise machine ya vehicle use se wear-and-tear hota hai, aur benefit multiple years tak milta hai. Isliye accounting mein hum full cost ek saal mein expense nahi karte; har period mein ek portion “depreciation expense” record karte hain. Financial statements par effect: Profit & Loss mein depreciation expense aata hai, jo profit ko reduce karta hai, aur Balance Sheet mein asset ki carrying value kum hoti jaati hai—usually accumulated depreciation ke through. Note: depreciation cash outflow nahi hota; cash tab gaya tha jab asset kharida. Depreciation ka goal hai matching principle follow karna—revenues ke saath related cost ko same period mein show karna.