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GC 400E2 GC 405E2 Non Cash Assets on Hand at  Form

GC 400E2 GC 405E2 Non Cash Assets on Hand at Form

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hi everyone today we are going to understand what's the effect of depreciation on the financial statements it's really simple first understand depreciation is a non-cash expense no cash inflow or outflow happens because of depreciation it's just a simple non-cash expense okay you purchased a tangible non-current asset you paid the money outflow happened and then you are expensing this asset you're taking this asset to your profit and loss part by part and in the balance sheet you have to decrease the value of this asset yeah that's the thing do with the tangible non-current asset yeah that's how we charge the depreciation so from the financial statements point of view what's happening in statement of profit and loss you have to record an expense expense is increasing over here as a result of that profit will decrease and then in the balance sheet you have to decrease the value of asset either directly or through the way of accumul

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