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Depreciation, Provisions and Reserves — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountDepreciation, Provisions and Reserves3 Marks
Question
Depreciation cannot be provided in case of loss in a financial year. Comment.
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Answer

Depreciation, being a charge against profit, has to be provided for, whether there is profit or loss in a financial year. If depreciation is not charged, business will show lower loss and higher asset value.

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