Question

How is the written down value calculated?

Answer 1

Written down value method of calculating depreciation is

Written Down Value Method = (Cost of Asset – Salvage Value of the Asset) * Rate of Depreciation in %

Rate of Depreciation (R) = 1 – [s/c]1/n

Where,

n = useful life of the asset

s = scrap value at the end of the period, that is n (the useful life of the asset).

c = written down value at present.

Also read:

• True and False Questions on Depreciation
• What Is Depreciation
• MCQs on Depreciation

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