larryp

What is Estimated Life?

Please eleborate what is Estimated Life?

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prindhorn

Estimated life is the number of years in which a fixed asset is expected to be used. Then, total cost of the asset is divided by total number of estimated years. The value, so determined, is called ‘depreciation for that year’ and is charged to profit & loss account. The same amount is deducted from total cost of fixed asset. The net amount (after deducting depreciation) is called ‘‘Written down Value’’. Source:http://in.docsity.com/en-docs/Accounting_Equation-Financial_Accounting-Lecture_Handout_

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loveu

"Interval when an asset is actually expected to create gross or even offer additional important assistance. Otherwise known as predicted lifestyle. "

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