Annuity Method of Depreciation: Learning Objectives: What is annuity method of depreciation? Where is it adopted? According to this method, the purchase of the asset concerned is considered an investment of capital, earning interest at certain rate. The cost of the asset and also
The annuity method is to calculate the internal rate of return and multiplying that by the original book value of the asset. That is the way to calculate the depreciation of assets by annuity method.
Depreciation Accounting – General Questions and Answers: Learning Objectives: Answers of some of the general questions about depreciation accounting. Theoretical: What is depreciation and how is it brought about? Name the different methods of providing for depreciation, and discuss any one of them in
Depreciation Methods: Learning Objectives: What are the various methods for depreciation? Fixed assets differ from each other in their nature so widely that the same depreciation methods cannot be applied to each. The following methods have therefore been evolved for depreciating various assets: Fixed