Hi Yashu
In SLM Method,(Straight Line Method)
Dep is calculated at Original Value
Example
If asset Value is 500000, and depreciation rate is 10%. Calculate depreciation for next 10 years using SLM Method
| Year | Opening value | Depreciation (10% of original value) | Value after depreciation (Opening value - Depreciation) |
| 1 | 500000 | 50000 | 450000 |
| 2 | 450000 | 50000 | 400000 |
| 3 | 400000 | 50000 | 350000 |
| 4 | 350000 | 50000 | 300000 |
| 5 | 300000 | 50000 | 250000 |
| 6 | 250000 | 50000 | 200000 |
| 7 | 200000 | 50000 | 150000 |
| 8 | 150000 | 50000 | 100000 |
| 9 | 100000 | 50000 | 50000 |
| 10 | 50000 | 50000 | 0 |
In WDV Method (Written Down Value Method)
,Dep is calculated at Opening Value of that Year
If asset Value is 500000, and depreciation rate is 10%. Calculate depreciation for next 10 years using WDV Method
| Year | Opening value | Depreciation (10% of opening value) | Value after depreciation (Opening Value - Depreciation) |
| 1 | 500000 | 50000 | 450000 |
| 2 | 450000 | 45000 | 405000 |
| 3 | 405000 | 40500 | 364500 |
| 4 | 364500 | 36450 | 328050 |
| 5 | 328050 | 32805 | 295245 |
| 6 | 295245 | 29525 | 265721 |
| 7 | 265721 | 26572 | 239148 |
| 8 | 239148 | 23915 | 215234 |
| 9 | 215234 | 21523 | 193710 |
| 10 | 193710 | 19371 | 174339 |
Written on Jan. 11, 2017, 6:48 p.m.