What is the difference between amortisation and depletion?

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Solution

The difference between amortisation and depletion is that amortisation is applicable in the case of intangible assets while depletion is applicable to mineral assets or natural resources which depletes with use.

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List-I	List-II
I. Amortisation	(a) Diminition in the life of the assets due to excessive use
II. Depreciation	(b) Exhaustion of natural resource
III. Depletion	(c) Expiration of tangible assets
IV. Obsolescence	(d) Expiration of intangible assets
	(e) Economic deterioration due to improved inventions

Amortisation is the decrease in the value of _________ .

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