In which of the following methods of charging depreciation, it is charged on Written down value of the asset?

Reducing balance method

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Annuity method

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Straight line method

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Sum of the digits method

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Solution

The correct option is A
Reducing balance method

Under the Reducing balance method, depreciation is charged on written down value method.

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Distinguish between straight line method and written down value method of calculating depreciation.

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