Question

Explain Written Down Value (reducing Balance) Method To Calculate Depreciation. What Are The Benefits Of This Method?

Answer 1

Answer:

Explanation:

step 1 take the value of asset and depreciate accordingly with the given rate.

step 2. the net amount after subtracting depreciation above is again taken and multiplied with the same rate and then the rate is subtracted from the net amount

and continue this up to the question asked.

With the help of this method the machinery or thing which we are depreciating does not become zero after depreciating a no. of times.