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Depreciation — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountDepreciation1 Mark
Question
What is Original Cost Method of providing depreciation?
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Answer

Under this method depreciation is charged at a fixed percentage on the original cost of the asset. The amount of depreciation remains equal from year to year and as such the method is also known as 'Equal Instalment Method' or 'Fixed Instalment Method'.

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