Question

How to calculate depreciation rate for written down method?

Answer 1

calculate depreciation on the reducing value of the Asset

ex.if a machine value is 10000

and depreciation is 10%

so 10% of 10000 will be 1000 is your depreciation for the first year

and depreciation for the second year is= value of the asset - depreciation of first year ×10%

I.e 10000-1000=9000×10% is 900 is the depreciation for second year ......under written down method

hope u understand

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