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Revision Notes

Depreciation — Revision Notes

NIOS · Class 10 · Accountancy

Depreciation revision notes for NIOS Class 10 Accountancy: 4 topics in quick points. Part of the NIOS Class 10 Accountancy syllabus.

61 questions32 flashcards3 formulas & key relations5 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?
Key topics in Depreciation include Meaning and Nature of Depreciation, Objectives and Factors Affecting Depreciation, Methods of Charging Depreciation, Merits, Demerits, and Comparison of Methods. Study these first, then practise questions on each for the NIOS Class 10 board exam.
How should I revise Depreciation for the NIOS Class 10 board exam?
Learn the core ideas first, then work through the 61 practice questions on Depreciation. Revise 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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