Question

i)Explain the straight line and reducing balance methods of depreciation?​

Answer 1

Answer:

straight line depreciation

Explanation:

straight-line depreciation. ... The main difference between the reducing balance and straight-line methods of depreciation is that while the reducing balance method charges depreciation as a percentage of an asset's book value, the straight-line method expenses the same amount each year.

Answer 2

Answer:in the straight line method depreciation is charged at a fixed percentage on the original cost of the asset.It is calculated by deducting scrap value from the cost of the asset.Then the balance is divided by number of years of expected life.

In reducing balance method the amount of depreciation is charged at a fixed percentage on the book value of the asset at the beginning of the year.Thus the amount of depreciation goes on reducing year after year whereas the rate of percentage of depreciation remains the same .This method is need more for those assets whose value diminishes as they become old nd unless with the passage of time.

Explanation: