Question

The part of the depreciable cost of an asset which is yet to be written off is known as ____________.

• A. residual value
• B. written down value
• C. closing value
• D. none of the above

Answer 1

The correct option is B written down value

Assets are depreciated every year by making an entry in the books of account by debit to depreciation account and giving a credit to the respective asset account. Thereby, the value of asset decrease every year.

After charging the depreciation, the balance value is called as written down value which need to be carried forward to the next year.

The part which is yet to be written off is known as written down value.