Question

Select the most appropriate answers from the alternatives given below and rewrite the sentence.

The amount of depreciation goes on decreasing in every year under the _________ Method.
a) Fixed instalment
b) Straight Line
c) Revaluation
d) Written Down Value

Answer 1

The amount of depreciation goes on decreasing in every year under the Written Down Value Method.

Explanation:
Under the written down value method, depreciation is calculated on the reduced balance of an asset. The cost of the asset is reduced by the amount of depreciation charged in a particular year. As depreciation is charged on the reduced value of the asset, it keeps on decreasing every year.