What is depreciation? What are the types of depreciation?

Question

The balance on 1st July 2008 of a plant bought on 1st July 2006 was 4,50,000

Answer 1

Depreciation
Depreciation allows a business to write off the loss it experiences through the wearing down of assets. There are many ways of figuring depreciation, but the straight-line method is the simplest and the most popular. Generally, depreciation is calculated using the asset's cost, residual value, and useful life.

Types of depreciation

1. Depreciation Accounting
2. Straight-line Depreciation
3. Unit-of-Production Depreciation
4. Depreciation Expense
5. Hours-of-Service Depreciation
6. Accelerated Depreciation