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Depreciation, Provisions and Reserves — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountDepreciation, Provisions and Reserves1 Mark
Question
Give two merits of providing depreciation by Written Down Value Method.
✓

Answer

  1. In this method, the total burden on Profit & Loss Account in respect of depreciation and repairs put together remains almost equal year after year.
  2. This method is approved by Income Tax Authorities.

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