Question

Under Fixed Installment Method depreciation is charged on ______.

पर्याय

• Original cost

•  Written down value

•  Scrap value

• Market value

Answer 1

Under Fixed Installment Method depreciation is charged on original cost.

Explanation:

The depreciation on asset can be charged as per the different methods, one of which is fixed/equal instalment method or straight line method. Under this method, depreciation is charged on the original cost of the asset at a fixed rate. Accordingly, the amount of depreciation under this method remains same throughout the life of the asset.

Hence, the correct answer is option (a).