This document discusses accounting for depreciation of fixed assets. It defines fixed assets as long-term assets used to generate future benefits for over a year. Depreciation is the allocation of the cost of fixed assets over their useful lives. Common methods of depreciation include straight-line and declining balance. The document outlines the costs that should be capitalized as part of the fixed asset value and costs that are considered revenue expenses. It also discusses accounting entries for purchase and installation of fixed assets and the objectives of recording depreciation.

1. ACCOUNTING FOR DEPRECIATION Prof. C. P. Gupta

6. Examples of Fixed Assets …

7. Capital Expenditure vs Revenue Expenses

8. Test your understanding about Fixed Assets …

10. Cost of Fixed Assets … A challenge…

16. Where are they shown in the books of accounts?

17. Depreciation … Please note that fixed assets are subject to Depreciation.