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Question: What are the various means of calculating depreciation?

Answer: Straight Line - divide the NBV by the number of periods of it's useful life. 4-4-5 - similar to straight line but calculated by number of weeks in a period.

Straight Line - divide the NBV by the number of periods of it's useful life. 4-4-5 - similar to straight line but calculated by number of weeks in a period.


Source: CoolInterview.com

Depreciation can be calculated by using any of the following methods:
1) Straight Line Method
2) Written Down Method
3) Annuity Method
4) Activity Method
Source: CoolInterview.com

1) Straight Line Method
2) Reducing Balance Method (WDV)
3) Annuity Method
4) Sinking Fund Method
Source: CoolInterview.com

DEpreciation can be calculate using various methods but practically they charge depreciation either in straight line method or WDV,straight line acording to comapnies act & WDV according to income tax act and the difference whether it is a profit or loss vil be posted to p&l Source: CoolInterview.com

There are various methods of calclulating depreciation.
some of the important methods are:
strait line method
written down value method
annuity method
sinking fund method

The basic difference between these methods is that they are applied according to the company's needs.
straight line method is used when company wants to follow this method.
while wdv method is used by the company as per income tax act & norms.
Source: CoolInterview.com

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