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Bipina Poudel
3 years ago Grade -11 (NEB) > Management Accountancy

Difference between Straight Line and Written Down Value Method

Write down the Difference between Straight Line and Written Down Value Method.

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  • Difference between Straight Line and Written Down Value Method
  • Down Value Method
  • Straight Line Method
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1 Answer

Bipina Poudel
3 years ago Answer Link CTEVT > Diploma/PCL > PCL In Medical Lab Technology Revised 2019
S.N Straight Line Method Written Down Value Method
1. Depreciation is calculated on the original cost of fixed assets. Depreciation is calculated on the book value (i.e. original cost less depreciation) of fixed assets.
2. Amount of depreciation remains constant for all years The amount of depreciation keeps on decreasing year after year.
3. At the end of the useful life of an asset, the balance in the asset account will reduce to zero At the end of the useful life of an asset, the balance in the asset account will not reduce to zero
4. It is not accepted by Income Tax Law It is accepted by Income Tax Law
5. Rate of depreciation is easy to calculate Rate of depreciation is difficult to calculate
6. It is suitable for assets which get completely depreciated on the account of expiry of its useful life It is suitable for assets which require more and more repairs in the later stage of its useful life
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