Question

Written down value depreciation method example

Answer 1

Hello

Written Value Method is the process of charging depreciation on the value of machinary obtained after charging depreciation.
It is also called reducing value method.

e.g.
Let the value of machinary be 1000
depreciation charged for 1 yrs is 100
now the value of machinary will be 900

also the depreciation for next year will be charged on 900 not on 1000

therefore depreciation for 2yrs will be 90
likewise depreciation for 3rd year will be 81



hope it helps
#jerri