Today we will discuss about the difference between straight line method and written down method: S. No. Point of difference Straight line method Written down value method 1. What is straight line method and written down value method? In this method the equal amount of depreciation is charged on original value of assets. In written down value method the depreciation rate is charged on diminishing value of assets 2. Straight line method and written down value method is also known as? This method is also known as fixed instalment method, Original Cost of method. This method is also known as diminishing balance method, Reducing Instalment method. 3. Which method is used to calculate the tax? Straight line method is not used to calculate the tax. Written down value method is used to calculate the tax. 4. For
This blog is totally for education purpose which helps to solve finance related numerical like time value of money, annuity ,perpetuity, technique of capital budgeting, cost of capital, working capital management and hire purchase etc.