Depreciation is a depreciable amount of an asset reducing the value of an asset over time.
And it depends on the business that which method of depreciation they are adopting either
Reducing balance or straight line.
for example the business using the straight line method</qb> & the asset buy has value of 200,000 in 2010 & 15% depreciation we have to charge every month so the total depreciation at the end of 2011 would be 60,000 & asset remaining value would be 140,000.
in 2010 asset cost : 200,000-30,000=170,000
in 2010 depreciation : (200000x15%) (30,000)
carryng value : 170,000-30,000=140,000
in 2011 depreciation : (200000x15%) (30,000)
in 2011 carrying value 140,000