Question

Which method is followed to have a uniform charge for depreciation and repair and maintenance together ?

• A. Written Down Value Method
• B. Straight Line Method
• C. Double Declining Method
• D. Sum of Years Digits Method

Answer 1

The correct option is A Written Down Value Method

The written down value method is charged on the book value of the asset. Since book value keeps on reducing by the annual charge of depreciation, it is also known as the reducing balance method. In this method, we charge on the value which is actually incurred in that accounting year.