The Depriciation refers to fall in the value or utility of fixed assets which are used in operations over the definite period of years. In other words, Depriciation is the process of spreading the cost of fixed assets over the number of years during which benefit of the asset is received. By J.R Batlibai's definition : "Its a matter of common knowledge that all fixed assets such as plants , machinery, tolls , buildings , lease holds ,furniture etc. gradually "diminish in value " as they get older and become worth out by constant use in the Business.