Accumulated Depletion | Depletion in Accounting

 

1.       Accumulated Depletion

What is accumulated depletion in accounting?

First understand the meaning of depletion, depletion means the amount reduced in the quantity of something.

Example: In an area 100 kilo gold is there, the mining work is going to takeout Gold and suppose 50 Kilogram gold has been taken out and reset 50 kilogram is yet to take. This 50 Kilogram gold is the quantity of depletion.

Now, Accumulated depletion is the total amount of depletion. Suppose in the year 2022 10 Kilo gold had taken, in 2023 50 kilo and 2024 20 kilo. The Accumulated depletion will be the remaining gold in the land that is 20 kilos.