Why depreciation is deducted from the acquisition value ?

Question added by Nadjib RABAHI , Freelancer , My own account
Date Posted: 2015/11/08

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by Qazi Abdul Aziz Aziz , Accountant , Anoosh al munif holding co. ltd.

When a depreciable asset is sold, the business recognises gain or loss based on net basis of the asset. This net basis is cost less depreciation.

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