Can you tell me the straight line method to calculate depreciation?

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Rahul Jaluria

Experienced teaching experience for 20 years

(Purchase price of asset +installation & other exp relating to purchase of asset as per AS-scrap value/no. of years of its economic life of asset. Each year depreciation charged will be equal amount.
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In case of calculate straight line method in depreciation,the depreciation amount will be fixed in every time of deduction. eg.-10% depreciation should be charge on the value of machinery 50000.so the amount of depreciation is-5000.now the 5000 will be charge on every time.like- 1. 50000 - 5000=45000...
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In case of calculate straight line method in depreciation,the depreciation amount will be fixed in every time of deduction. eg.-10% depreciation should be charge on the value of machinery 50000.so the amount of depreciation is-5000.now the 5000 will be charge on every time.like- 1. 50000 - 5000=45000 2.45000-5000=40000 3.40000-5000=35000................ in these method once time the value of machinery show nil(zero balance) so it's called unscientific method. read less
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Finance Specialist

(Original cost-Scrap value)/ Expected life of the fixed asset
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Accounting and Taxation Expert

simple calculation that is net of total cost devided by usefull life of the assets.
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Commerce Tutor

suppose if machine cost is rs 100000 and rate of dep is 10%.then you just calculate depreciation @10% which is rs10000 and charge it same for the next 10 months.means just charge rs10000 each for the periods. in case there is also scrap value given of rs 20000.then you have to just deduct that scrap...
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suppose if machine cost is rs 100000 and rate of dep is 10%.then you just calculate depreciation @10% which is rs10000 and charge it same for the next 10 months.means just charge rs10000 each for the periods. in case there is also scrap value given of rs 20000.then you have to just deduct that scrap value from the cost of machine.100000-20000=80000.now calculate dep @ of 10% on 80000 and charge it in your books. read less
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(cost of asset-salvage value)/life of asset
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