Question

Under which of the following method of depreciation charged does not declines?

• A. Fixed instalment method
• B. Sum of year digit method
• C. Double decline method
• D. All of the above

Answer 1

The correct option is A Fixed instalment method

Fixed installment method is one of the methods of allocating depreciation. In this method, every year a fixed amount of depreciation is deducted from the value of assets and the same amount is debited to profit and loss account. The book value of the assets is reduced to zero at the end of the expected life.