M/s Business Services has not used its CNC Bending Machine No. 10 during the year. Hence, the accountant has not provided Depreciation on it. Do you consider it to be correct? Give your reasons.

M/s Business Services has not used its CNC Bending Machine No. 10 duri

1.	M/s Business Services has not used its CNC Bending Machine No. 10 during the year. Hence, the accountant has not provided Depreciation on it. Do you consider it to be correct? Give your reasons.
Answer» Solution :No, I do not consider it. to be CORRECT because an ASSET does not depreciate only because of its use but ALSO because of the EFFLUX of time. Although CNC Bending Machine No. 10 has not been used, its value MUST have declined because of efflux of time.

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M/s Business Services has not used its CNC Bending Machine No. 10 during the year. Hence, the accountant has not provided Depreciation on it. Do you consider it to be correct? Give your reasons.

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