Question

Under the written down value method depreciation is calculated on the original cost of an asset.

• A. True
• B. False

Answer 1

The correct option is B False

Under written down value, depreciation is charged at certain percentage each year on the balance of the asset which is brought forward from the previous year. The amount of depreciation charged in each period is not fixed but it goes on decreasing gradually, as the beginning balance of the asset in each year will reduce.