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Querist : Anonymous (Querist)
09 November 2015 while computing depreciation under sum of years digit method, Why do we consider digits in descending order...what is the logic behind it?

25 November 2015 When digits are in descending order the depreciation gets charged in the ratio of the digits. This means that higher depreciation is charged in the initial years. This method is like reducing balance method where the depreciation charge decreases over time.



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