What are the limitations of Straight Line Method?
AccountancyClass 11CBSEAnswered 23 Jun 2026
Answer
Limitations of Straight line Method
- This method is based on the faulty assumption of same utility of the asset in different accounting years.
- With the passage of time, work efficiency of the assets decreased and repair and maintenance expense increases. Hence, under this method total amount charged against profit on account of depreciation and repair taken together will not be uniform throughout the life of the asset, rather it will keep on increasing from year to year.
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