NCERT · Class 11 · Accountancy · Depreciation, Provisions and ReservesWhich method of depreciation charges equal amount of depreciation every year?
Step-by-Step Solution
Under the Straight Line Method, a fixed and equal amount of depreciation is charged every year during the useful life of the asset.
Detailed Options Breakdown
Option : Diminishing Balance Method
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Depreciation, Provisions and Reserves.
Option 1: Straight Line Method (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Annuity Method
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Depreciation, Provisions and Reserves.
Option 3: Depletion Method
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Depreciation, Provisions and Reserves.
💡 Study Guide: This question tests core syllabus concepts from Depreciation, Provisions and Reserves. For formulas, key summaries, and mock exam reference guides, read the full Depreciation, Provisions and Reserves Revision Notes.