Question

Under which of the following method of depreciation is not charged uniformly?

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

Answer 1

The correct option is B Sum of year digit method

The sum of years' digits method is a form of accelerated depreciation that is based on the assumption that the productivity of the asset decreases with the passage of time. Under this method, a fraction is computed by dividing the remaining useful life of the asset on a particular date by the sum of the year's digits.