Accounting For Depreciation In Manufacturing Industry

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We are in the jet age, Niger cannot do with out depreciation the word depreciation is the war and tear of use of fixed asset or a loss value of used of fixed asset.

The purpose of the study was to enable the accountant to deprecation the fixed asset in manufacturing industry. The chapter run form chapter one to three justice has been done to this topic.



Title page

Approval page




Table of content



1.1            Introduction

1.2            Statement of problem

1.3            Objective of the study

1.4            Significance of study

1.5            Scope and limitation of the study



Literature review

2.1            Definition of depreciation

2.2            Causes of depreciation

2.3            The needs for depreciation

2.4            Depreciation and taxation

2.5            Methods of depreciation



3.1            Summary of findings

3.2            Recommendation

3.3            Conclusion






For a manufacturing firm like golden Guinea plc to carry out its business successfully and to meet its main objectives it needs among. Other things fixed assets. The fixed assets  unlike current assets are held over several period wish the objective or earning revenue. Hence, the amount of money spent on their purchase is treated as capital expenditure. Accepted expenditure refers to the amount spend by on organization of the acquisition of a permanent assets intended profits.

          There are numerous example of these types of assets some of which are land and building, however, these comprise of the company’s factory building, offices and warehouses used for storage purpose, others include pant and machinery, fixtures and fittings and equipment. These assets are used by industries or manufacturing organization for actual transformation or raw material into sleazier finished goods. The last but not the least are nature resource. These consist of mine queries oil coal and gas deposits.

          These are some time called lasting assets. Assets since  they became worthless when the deposit or resources have been depleted. In addition, they are normally consumed in the services of the business by effusion of time that is by wear and tear.

          This fixed assets are normally recorded in their book at then cost pride, but it is assured that after making use of them for some periods, usually more than one financial year their value and efficiency decrease.

          For examples, after some years efficiency and productive capacity decline continuous xxx it reduces a time when the assets becomes useless and need replacement.

          Hence, it is a fact that on asset depreciates from year to year when it is employed in the business.

          This reduction in the value of fixed asset is known in accounting term as depreciation of fixed assets for which the work is.



Depreciation is a sort of expense used in determining the cost at a real or capital asset in carrying out the operations of any manufacturing firm or enter press, in order to determine and report the real profit of an organization for the purpose of evaluating its performance.

          There are different methods of providing for this depreciation expenses in the books of manufacturing firms and the presence of these different methods of providing for deprecation have varying impact which leads to variation in the reported profits and in the net book value of assets stated in their financial statement of manufacturing firms.

          Most people are not aware of these methods of providing for depreciation and hence their resultant impact or affect on the reported profit and the net book value of asset stated in the financial statement, that they tend to pass erroneous judgment on the profitability of one manufacturing firm or the performance comprises between their reported profit in the financial statement, without regard to the last element charged against


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