#7 Straight line method | Reducing balance method | Depreciation | Complete numerical question |

In this video lecture i have explained the two most important methods of depreciation , the straight line method of depreciation and the reduing balance method of depreciation.
what is straight line method of depreciation is explained in detail and what is reducing balance method of depreciation is also discribe. complete numerical problem with solutionis given with the help of original cost method of depreciation and diminishes balance method of depreciation.
fixed installment method of depreciation and written down value method of depreciation are the most simplest method of depreciation in which depreciation rate is charged on the cost price of asset in each year and on the cost price in ist year and subsequently on the carrying value or book value of the fixed asset respectively.
Amount of depreciation expense is always remain same in every year in straight line method of depreciation if the asset is being used for the whole year.
In case of reducing balance method of depreciation the amount of depreciation expense is higher in initial years of use and subsequently it decreases as the use of asset prolong.
in fixed installment method of depreciation ,the depreciation expense can also be calculated with the help of formula when the depreciation rate is not given in the question.
in reducing balance method of depreciation there is no formula exist ,the rate of depreciation is charged on the cost price in ist year of use and subsequently on the book value of asset.
formula for calculating depreciation expense through fixed installment method of depreciation is given below = (cost - scrape value)/estimated useful life.
fixed installment method of depreciation , original cost method of depreciation , straight line method of depreciation and continuous method of depreciation for calculating depreciation expense are synonyms with each other.
Reducing balance method of depreciation , written down value method of depreciation , diminishes
balance method of depreciation are the synonyms with each other.
there are many other methods of depreciation but we will discuss them later in coming video lectures.
previous lectures of depreciation are as under :
introduction and basic concept in depreciation :
• #1 Accounting for depr...
difference between depreciation and fluctuation & types of reserve :
• #2 depreciation vs flu...
Accounting concepts and conventions or accounting principles:
• Accounting concepts an...
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Amazing... Bhotttt khoob ... Very much easy way to explain

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Good video

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well explained v.helpful sir.....keep it up

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[@mazharhussain723]

depreciation explined very well sir...thanks...😍

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Glad you like it.. Keep watching 👍

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Well explained...concept clear hogia

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