What is the rate of charging depreciation under diminishing method ........

Accountancy (11th) Chapter-7 Depreciation, Provisions and reserves

Download Solution PDF

What is the rate of charging depreciation under diminishing method?

12% p.a.

15% p.a.

10% p.a.

Not fixed

छोटे Courses बड़े Results

Master Chapter-7 Depreciation, Provisions and reserves

Prepare through Micro-courses

Try Now

Explanation:

Under this method, the amount of depreciation is calculated as a fixed percentage of the reducing or diminishing value of the asset standing in the books at the beginning of the year, so as to bring down the book value of the asset to its residual value. The amount of depreciation goes on decreasing every year.