The annual amount of depreciation charged every year _______ under written down value method.

Highest in earlier years and gets decline in later years

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Highest in earlier years and gets increases in later years

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lowest in earlier years and gets decline in later years

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Lowest in earlier years and gets increases in later years

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Solution

The correct option is A Highest in earlier years and gets decline in later years
Under written down value of method, depreciation calculated at a fixed percentage on the original cost in the first year and on the written down value, in subsequent years of a fixed depreciable asset. Under this method, the rate of depreciation remains constant year after year whereas the amount of depreciation goes on decreasing.

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