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Depreciation is the systematic allocation of the depreciable amount of a fixed asset over its useful life. It represents the reduction in the value of tangible assets due to wear and tear, obsolescence, passage of time, or exhaustion. Various methods are used in financial accounting to calculate depreciation, depending upon the nature of the asset and the objectives of the business. One of the most common methods is the Fixed Instalment Method, also known as the Straight Line Method (SLM). Under this method, a fixed amount of depreciation is charged every year throughout the useful life of the _________ ___ __________ ______ ________ ______ _______ ________.
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