Question

Under Written Down Value Method depreciation is charged on ________ of the asset.

• A. Historical cost
• B. Written down value
• C. Original cost
• D. None of the above

Answer 1

Answer: (B)

Written down value

Under the written down value method, depreciation calculated at a fixed percentage on the original cost (in the first year) and on the written down value, (in subsequent years) of fixed depreciable asset is written off during each accounting period over the expected useful life of asset. Under this method, the rate of deprecition remains constant year after year whereas the amount of depreciation goes on decreasing.