Question

difference between straight line method and written down value method of depreciation

Answer 1

Calculation of depreciation:

SLM:On the original cost

WDM: On the written down value of the asset.

Annual depreciation charge
SLM: Remains fixed during the useful life.
WDM: Reduces every year

Value of asset
SLM: Completely written off
WDM: Not completely written off

Amount of depreciation
SLM: Initially lower
WDM: Initially higher