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Monday, 8 July 2019

Methods of depreciation

There are a number of methods for writing off depreciation. These are the following :

(a) Fixed percentage on the original cost (also known as the Straight Line Method or the
Fixed Instalment Method).
(b) Fixed percentage on the diminishing balance (also known as the Reducing Instalment
method).
(c) Annuity Method.
(d) Depreciation Fund Method.
(e) Insurance Policy Method.
(f) Machine Hour Rate Method.
(g) Depletion Method.
(h) Revaluation Method.

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