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What is the difference between straight line depriciation
method and written down value method?
- 6 Answers
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Answer / girish
Straight line method means charging depreciation on the
original cost of goods and written down method means
charging depreciation on balance amount every year.
| Is This Answer Correct ? | 103 Yes | 9 No |
Answer / suresh
SLM - under SLM an equal amount of charge(Dep)is reduced
from the original value of the asset every year based on a
certain %.
WDV - under WDV the charge(Dep)is calculated and reduced
every year on the reduced amount from the previous year
again based on certain %
Expl:
Original Cost of Car 100,000
Rate of Dep 10% every year
Depreciation calculation:
SLM
1 year 10,000(10% of 100,000)
2 year 10,000(10% of 100,000)
3 year 10,000(10% of 100,000) and so on....
WDV
1 year 10,000(10% of 100,000)
2 year 9,000(10% of 100,000-10,000=90,000)
3 year 8,100(10% of 100,000-10,000-9,000=81,000)
and so on....
| Is This Answer Correct ? | 42 Yes | 5 No |
Answer / uma
Normally the amount written off every year is the same in
Straight line depreciation method and it differs in Written
down method as the depreciated amount is calculated on the
written down value.
| Is This Answer Correct ? | 32 Yes | 12 No |
Answer / sanjib
In S L M depreciation is evenly charged over fixed
assets.But in W D V method depreciation is charged unevenly
over the fixed assets.
| Is This Answer Correct ? | 24 Yes | 6 No |
Answer / heena
In straight line method the amount to be depreciated remains constant where as In written down method the amount to be depreciated decreases by each passing year.
| Is This Answer Correct ? | 25 Yes | 8 No |
Answer / mahathi
straight line method we follow fixed percent of depreciation to calculate the value of the asset. written down value method is we reducing the valued of the asset every year.
| Is This Answer Correct ? | 6 Yes | 1 No |
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