Give the formula to calculate the annual depreciation as per Straight Line Method.

Open in App

Solution

Depreciation per year $= \frac{Cost of Fixed Asset - Scrap Value}{Life period of Fixed Asset}$
$= \frac{(P u r c h a s e P r i c e + I n s t a l l a t i o n c h a r g e s) - Estimated Scrap Value}{Estimated Life period of Fixed Asset}$ .

Suggest Corrections

Similar questions

Give the formula to calculate the annual depreciation as per 'straight line method'.

Annual depreciation of machine is Rs. 40,000, cost of machine is Rs. 5,00,000, rate of depreciation according to straight-line method will be-

Join BYJU'S Learning Program