Follow Our FB Page << >> for Daily Laughter. We Post Funny, Viral, Comedy Videos, Memes, Vines...

Please Explain the following Depreciation Methods?

1.stright line method
2.reducing method
3.annuti Method
4.funds Method Method

Please Explain the following Depreciation Methods? 1.stright line method 2.reducing method

Answer / guest

Straight line method: This method assume equal amount of
depn over an assets useful life. This translates to equal
depn expenses amount every period.
Reducing method: The reducing balance method of depreciation
provides a high annual depreciation charge in the early
years of an asset's life but the annual depreciation charge
reduces progressively as the asset ages.

To achieve this pattern of depreciation, a fixed annual
depreciation percentage is applied to the written-down value
of the asset. Thus, depreciation is calculated as a
percentage of the reducing balance.
Annuti method: A method of depreciation under which the
depreciation expense is an amount of an Annuity so that the
amount of the annuity at the end of the useful life would
equal the Acquisition Cost of the asset
fund method:the depreciation charge should include interest
on accumulated depreciation at the beginning of the period.
This method is rarely used in practice.
insurance method:

Is This Answer Correct ?    1 Yes 0 No

Post New Answer

More Accounting General Interview Questions

Withhold Tax Types

0 Answers   Accenture,

What is cash profit

2 Answers   Capital IQ,

Company ABC split 1:3 on March 31, 2009 and split 3:1 on March 31, 2008. Date Close Price # of Shares Revised Closed Price Revised # of Shares June 15, 2009 $75.00 3000 $75.00 April 23, 2009 $72.00 2300 $72.00 March 31, 2009 $67.00 999 $ March 31, 2008 $275.00 300 $91.66 November 30, 2007 $233.00 6800 $77.66 October 6, 2006 $1,333.00 13000 $444.33

0 Answers   Tech Mahindra,

any example should cover all three types of accounts in one entry

2 Answers  

1.recivable and payble,tds,esi

0 Answers  

How to calculate sundry creditors in Tally ERP

2 Answers  

what the three thing that can not make accounting statement balance?

1 Answers  

credit card expenses entry kisme pass karenge

0 Answers  

how to calculate working capital?

6 Answers  

Hello Friends, I am Vinod Rawat & want some tips of interview question for the post of accountant in a reputed company Pls. Given Examples.

0 Answers  

if current ratio=2.5 : 1 liquid ratio= 1:1 closing stock=rs 45000 calculate current assets current liabilities liquid assets

1 Answers  

what is differnce between balance sheet of a bank & a company

0 Answers   Banking, Standard Chartered,