give 3 points of difference between amortisation and depriciation

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Hey Rashi,
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Difference between Depreciation and Amortisation

S. No. Depreciation Amortisation

It is the loss in the value of tangible assets due to normal wear and tear, obsolescence and due to passage of estimated useful life of asset. It is the loss in the value of intangible assets over its useful life.

It is charged on Plant and Machinery, Building, equipments etc. It is charged on goodwill, patents etc.

Tangible asset may have salvage value, which is considered for calculating depreciation. Usually, intangible does not have any salvage value.

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Difference between Depreciation and Amortisation
S. No.	Depreciation	Amortisation
	It is the loss in the value of tangible assets due to normal wear and tear, obsolescence and due to passage of estimated useful life of asset.	It is the loss in the value of intangible assets over its useful life.
	It is charged on Plant and Machinery, Building, equipments etc.	It is charged on goodwill, patents etc.
	Tangible asset may have salvage value, which is considered for calculating depreciation.	Usually, intangible does not have any salvage value.