Question

Distinguish between straight line method and written down value method of calculating depreciation.

Answer 1

Straight line Method	Written down value method
The basis of charge is the original cost of acquisition of the asset.	The basis of charging depreciation is net book value (i.e., original cost less depreciation till date) of the asset.
A fixed amount is charged every year during the life time of an asset.	The charge of depreciation declines every year with respect to the book.
Straight line method is not recognized by income Tax Act.	Written down value method is recognized by the income Tax Act.