Could any body make clear to me the difference between Depreciation & Amortization?
As we r getting furniture allowance and it is depreciated for four years.One of my friends told me its not depreciation its amortization......its make me confused.

thanks.

You refund a bond with a loan. The loan has expenses that can be amortized over the remaining life of the loan. You initially expense all these costs but before the end of the fiscal year, you want to amortize the correct proportion of them. Since you had hit an expense account with a debit when you expensed these loan costs, you must credit that expense account when you reverse this. What will your new debit account be on this entry? Will it be an expense account for amortization cost or some other type of account?