Differentiate between Straight Line and Write-Down Value methods of depreciation.
AccountancyClass 11CBSEAnswered 23 Jun 2026
Answer
| Bases of Difference | Straight Line Method | Written Down Value |
| Basis of charging depreciation Annual depreciation Total charge against profit and loss account in respect of depreciation and repair Recognition by income Tax Suitability | Original Cost Fixed year Unequal year after year. Not recognized It is suitable for assets in which repair charges are less, the possibility of and obsolescence is low scrap value depends upon the time period involved. | Book value Declines year after year. Almost equal every year. Recognized It is suitable for assets, which are affected by technological changes and require more repair expenses with passage of time. |
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