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📉 What is Straight Line Depreciation? | Explained with Simple Examples 🧾
Depreciation is a method where an asset loses the same value every year over its useful life. It helps businesses spread the cost of an asset evenly.

📌 Formula:
Depreciation = (Cost of Asset – Scrap Value) / Useful Life

📊 Examples:
✅ You buy a machine for ₹1,00,000 with a scrap value of ₹10,000 and useful life of 5 years:
👉 (₹1,00,000 – ₹10,000) / 5 = ₹18,000 depreciation per year

✅ Every year, the same amount is reduced from the asset’s value and shown as an expense in books.

🎯 In this video, you’ll learn:
What is straight line depreciation

How to calculate it with formula

When and why it is used

Real-life accounting examples

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