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Depreciation

NIOS · Class 10 · Accountancy

Quick revision notes for Depreciation — NIOS Class 10 Accountancy. Key concepts, formulas, and definitions for last-minute revision.

61 questions32 flashcards5 concepts

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Key Topics to Revise

1

Meaning and Nature of Depreciation

  • Depreciation is the portion of the cost of fixed assets charged each year as expense.
  • Fixed assets are not treated as goods or as a one-year expense because they provide benefits for more than one year.
  • Fixed assets are also called long term assets.
2

Objectives and Factors Affecting Depreciation

  • One objective of depreciation is to show the true financial position of the business.
  • Another objective of depreciation is to retain funds in the business for replacement of the asset.
  • Cost of asset includes all expenses incurred before the asset is first put to use.
3

Methods of Charging Depreciation

  • The two main methods are Straight Line Method and Diminishing Balance Method.
  • Under Straight Line Method, depreciation is uniform from year to year.
  • Straight Line Method is also called Fixed Installment Method or Original Cost Method.
4

Merits, Demerits, and Comparison of Methods

  • Merit of Straight Line Method: simplicity of calculation.
  • Merit of Straight Line Method: asset is completely written off.
  • Limitation of Straight Line Method: difficulty in computation when machines have different life-spans.

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Full Notes

Key Concepts

The portion of the costAssets like buildingsDepreciation arises due to normal wearOne objective is to showCost of asset includes the purchase

Frequently Asked Questions

What are the important topics in Depreciation for NIOS Class 10 Accountancy?
Depreciation covers several key topics that are frequently asked in NIOS Class 10 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Depreciation — NIOS Class 10 Accountancy?
Understand the core concepts first, then work through the 61 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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