Question

State any two demerits of the Written down value method.

Your answer

State any two demerits of the Written down value method.

Your answer



​

Answer 1

Answer:

Disadvantages of the written down value method of depreciation:

1.Under this method the book value of an asset cannot be reduced to zero.

2.The rate of depreciation has to be very high if the written down value is to be brought down to its estimated scrap value.