Answer Posted / santosh kulkarni
ACTUALLY TWO TYPES OF CALCULATION OF DEPRICIATION ONE IS
STRATE LINE METHOD & OTHER IS WRITTEN DOWN METHOD BY THE
FIRST METHOD YOU HAVE CALCULATE DEPRICIATION ON THE OPENING
AMOUNT OF ASSET FOR EXAMPLE
VALUE OF ASSET 20000
RATE OF DEPRICIATION 10%
FOR THE 1 YEAR CALULATION IS (20000*10%=2000/-)
FOR THE SECOND YEAR
VALUE OF ASSET 18000
RATE OF DEPRICIATION
THE CALCULATION (18000-2000)
IT MEANS THE AMOUNT OF DEPRICIATION IS FIXED
& BY THE SECOND METHOD
THE YOU HAVE CALCULATE DEPRICIATION ON THE WRITTEN VALE OF
ASSET
FOR EXAMPLE
(20000*10%=2000
20000-2000=18000
18000*10%=1800
18000-1800=16200
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