Question

State any two differences between straight line method and diminishing balance method.

Answer 1

Points of Difference	Straight line method	WDV method
1.Calculation of depreciation	Depreciation is calculated on the original cast of the asset.	Depreciation is calculated on the written down value of the asset.
2.Calculation of rate of depreciation	It is easy to calculate the rate of depreciation.	It is very difficult to calculate the rate of depreciation.