Question

What Is Sinking Fund Method Of Calculating Depreciation?

Answer 1

The sinking fund method is a depreciation method that provides funds for the replacement of an asset at the end of its useful life. ... An amount equal to the depreciation amount is then invested to earn interest, which is subsequently deposited into the fund and then reinvested.

Answer 2

Answer:

Under this method, one Depreciation Fund Account is opened and the amount of depreciation is credited to that account. The asset account year after year stands at original cost.