What is depreciation and how many methods are using explain
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Answer / sandip sharma
As Per Accounting Standard 6 there is only two types of method
1: Straight line method:- Assets value Rs 100 Dep. @ 10% P.A or life is 10 years then Dep p.a is Rs. 10
2: Reducing balance method:- Assets value Rs 100 Dep. @ 10% P.A then Dep for 1st Year is Rs. 10 For 2nd Year (100-10)x10% = Rs. 9 as on.
| Is This Answer Correct ? | 11 Yes | 0 No |
Answer / imraz
Methods of depreciation:
1. Unirorm charge methods:
a. Fixed installment method
b .Depletion method
c. Machine hour rate method.
2. Declining charge methods:
a. Diminishing balance method
b.Sum of years digits method
c. Double declining method
3. Other methods :
a. Group depreciation method
b. Inventory system of depreciation
c. Annuity method
d. Depreciation fund method
e. Insurance policy method.
Depreciation Methods:
1. Straight Line Method or Fixed Installment method
2. Diminishing Balance Method
3. Sinking Fund Method
4. Annuity Method
| Is This Answer Correct ? | 10 Yes | 5 No |
Answer / nilesh
Depreciation is nothing but reduction in the value of asset with the passage of time. There are three types of method to calculated depreciation on asset.
1. Fixed installment method.
2. Reducing balance method.
3. Change in method.
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