e Learning for Online Courses like UPSC, K3, K10, K12, CBSE NCERT, ICSE, NEET & JEE
e Learning for Online Courses like UPSC, K3, K10, K12, CBSE NCERT, ICSE, NEET & JEE
The Straight Line Method is one of the oldest and most extensively used methods for calculating depreciation. This strategy is based on the premise that the asset will be used equally throughout its useful life.
Because the amount of depreciation remains consistent from year to year during the asset’s useful life, it’s also known as the fixed instalment method. During the lifetime of an asset, a fixed and equal amount is charged as depreciation in each accounting period, according to this procedure.
The following formula is used to calculate the amount of depreciation to be supplied using this method:
Depreciation = frac{Cost of asset – Estimated net residential value}{Estimated useful life of the asset}
The Straight Line Method is one of the oldest and most extensively used methods for calculating depreciation. This strategy is based on the premise that the asset will be used equally throughout its useful life.
Because the amount of depreciation remains consistent from year to year during the asset’s useful life, it’s also known as the fixed instalment method. During the lifetime of an asset, a fixed and equal amount is charged as depreciation in each accounting period, according to this procedure.
The following formula is used to calculate the amount of depreciation to be supplied using this method:
Depreciation = frac{Cost of asset – Estimated net residential value}{Estimated useful life of the asset}
