Ledger Question:

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Tell me why depreciation is not charged on land?

Ledger Interview Question
Ledger Interview Question

Answer:

Land is such an asset whose value goes on increasing, unlike other assets whose value gets reduce over a period of time. depreciation is charged on assets so that when in future , asset will be replace we will have money to purchase new asset. But in case of land this not happens that is why depreciation is not hcarged on land

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