Sunday 29 May 2011

I. Fixed / Equal Instalment OR Straight Line Method

Features :
(1) A fixed portion of the cost of a fixed asset is allocated and charged as periodic depreciation.
(2) Such depreciation becomes an equal amount in each period.
Depreciation = (V-S)/n
Where,
V= Cost of the Asset
S= Residual value or the expected scrap value
n= estimated life of the asset.

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