METHODS OF CALCULATING DEPRECIATION I CLASS 11 ACCOUNTS I STRAIGHT LINE & WRITTEN DOWN VALUE METHOD

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LECTURE BY SRCC GRADUATE I SANYAM BHAYANA I VIDYAM I BEST ACCOUNTANCY TEACHER
🏷️ CLASS: 11 Commerce
📘 SUBJECT: Accountancy
📗 CHAPTER: Depreciation
📖 TOPIC: Methods of calculating Depreciation
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There are two main methods of calculating depreciation:

1️⃣ Straight Line Method (SLM):
Depreciation is charged equally every year throughout the life of the asset.
🧮 Formula → (Cost of Asset – Scrap Value) ÷ Useful Life

2️⃣ Written Down Value Method (WDV):
Depreciation is charged on the book value of the asset each year, so the amount keeps decreasing annually.
🧮 Formula → Rate × Book Value at the Beginning of the Year

👉 SLM = Constant charge,
👉 WDV = Decreasing charge!
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