Fixed Installment Method
Fixed installment method is also know as straight line method or original cost method. Under this method the expected life of the asset or the period during which a particular asset will render service is the calculated. The cost of the asset less scrap value, if any, at the end f its expected life is divided by the number of years of its expected life and each year a fixed amount is charged in accounts as depreciation.
Diminishing Balance Method of Depreciation: Learning Objectives: Define, explain and give example of the diminishing balance method/written down value method/reducing installment method? What are advantages and disadvantages of diminishing balance method? Definition and Explanation: Diminishing balance method is also known as written down value
Depreciation of Various Assets: Learning Objectives: How should the depreciation on various assets be calculated?. We discuss below the problem of depreciating some given assets. Freehold Land and Building: It means that land and building which has been purchased out right and not on
Fixed Installment Method or Straight Line Method or Original Cost Method of Depreciation: Learning Objectives: Define, explain and give example of fixed installment or straight line or original cost method. What are the advantages and disadvantages of of using this method? Fixed installment method