Analysing Comparative Statement of Profit and Loss
Under total c...
Question
Under ___________ total charge of depreciation declines over the life of the asset.
A
Straight Line Method
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B
Written Down Method
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C
Both (A) & (B)
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D
None of the above
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Solution
The correct option is A Written Down Method WDV method is a charge on declining/reducing basis unlike SLM method which is charged equally throughout the period.
Since depreciation amount reduces under WDV method, repairs pertaining to the asset increases due to the increased cost of maintenance not covered by the depreciation charge.