Sunday, 29 May 2011

6. Mileage Method

(1) It considers the total distance in miles or kilometeres to be run by a vehicle, like bus, car, lorry etc.

(2) Depreciation per mile/km = Cost Price —Scrap Value / Total miles or kms. expected to be run by the vehicle

(3) Annual Depreciation = Depn. per mile or km x distance covered during the year

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