Straight line method spreads the cost evenly, while written down value charges more depreciation in early years. For this machine, straight line gives ₹36,000 yearly, but WDV applies a fixed percentage on the reducing balance. Studying for CA finals, I see this in textbooks, but in my father's shop, he writes off a new fridge in his mind the day it arrives, fearing it will break. Theory wants precision, but life teaches you depreciation hits fastest when you can least afford it.
#exams#study
Jump in to reply — no account needed.