Question

Discuss the advantages and disadvantage of fixed instalment method

Answer 1

Answer:

Advantages Of Fixed Installment Method Of Depreciation

The main advantages of fixed installment method of depreciation are given below

* Fixed installment method is simple to understand and easy to calculate the amount of depreciation.

* Fixed installment method provides the same amount of depreciation throughout the life of the asset.

* Fixed installment method helps to estimate the amount of depreciation in advance.

Disadvantages Of Fixed Installment Method Of Depreciation

Following are the main disadvantages of fixed installment method of depreciation.

* Fixed installment method does not take into consideration the seasonal fluctuations in the use of fixed assets. Depreciation amount per month will remain the same irrespective of the use of machine.

* Equal amount of Depreciation is charged even though the capacity of the machine declines every year.

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Answer 2

Answer:

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here's ur answer in this attachment