DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name : Y. Yella Reddy

Designation : HCCP
Branch : DCCP
Institute : S.G.Govt. Polytechnic, Adilabad
Year/Semester : III Semester
Subject : Accountancy-II
Subject Code : CCP-302
Topic : Depreciation
Duration : 50 Min.
Sub Topic : Introduction And Definition Of
Depreciation
Teaching Aids : Animations
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Objectives:

On completion of this period you would be

able to know:

 What is an asset

 Assets required to run the business

 Classification of Assets

 Introduction and features of Depreciation

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Asset means:
Property owned by a person, company etc. that has
value and can be used or sold to pay debts.

Value:
Worth of something compared with the price paid
for it.

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• Fixed Assets:
Assets which are acquired for longer use.
eg. Machinery, Land & Buildings etc.

• Current assets :
Assets which are acquired to run the business.
eg. Cash, Bills Receivable etc.,

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Also classified in another way

1) Tangible Assets :
Assets which can be seen.
eg. Furniture, Machinery etc.

2) Intangible Assets:
Assets which can not be seen.
eg. Patents, Goodwill etc.

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Definition of Depreciation:
” Depreciation is the permanent decrease in the value of
an asset.”

 Derived from Latin word :”depretium”

 De-Decline
 Pretium-Price

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Summary:

We have discussed today about:

 Assets definition
 Types of Assets fixed and current
 Types of Assets tangible and in tangible
 Definition of depreciation

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Quiz:
1. Machinery is a _____.

c) Fixed asset.
d) Current asset.

7. Cash is a ______.

i) Fixed asset.
j) Current asset.
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3.Goodwill is a ______.

c) Tangible asset
d) Intangible asset

1. Furniture is a ______.
b) Intangible asset.
c) Tangible asset.

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Frequently Asked Questions:

1.What is an Asset.
2.Give the classification of Assets.
3.Define Depreciation.

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