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Written Down Value Method

248 views 1 replies

sachin xavier

11 Points Joined December 2019

I know to find out WDV for depreciation (1-n [scrap /cost], through calculator (12 times square root ), but I don't know the logic behind that, could you please explain that or can I do it manually.

Replies (1)

Prakash Gehani

Consultant & Teacher(Whatsapp 8718057907

1306 Points Joined November 2017

If we deduct dep from cost of asset during its useful life the remaining value will be scrap value, which can be calculated from following equation:

cost x (1-dep rate/100)^useful life = scrap value

from above equation, formula for calculating dep under wdv method derived.