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Calculate the total Depreciation for four or five Years so
give example?
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Answer Posted / salesh kumar k
Depreciation is the reduce in the value of fixed asset as a percentage given by accounting standards say land and building
10% a year.The depreciation is calculated in two methods called straight line method (SLM)where the amount of depreciation remains constant over the period.But widely appllied method is written down value method(WDV) where the depreciation is calculated as a percentage of value of asset over the period. Eg 100000-10%=90000 and 2nd year 105 0n 90000..
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