Explain the ‘Fixed Installment Method’ of charging depreciation.

1.	Explain the ‘Fixed Installment Method’ of charging depreciation.
Answer» Fixed Installment Method of charging Depreciation: (i) Under this method the amount of depreciation remains constant from year to year. (ii) The original cost of the asset is reduced to zero at the end of its useful life. (iii) This method is suitable for those assets whose useful life can be estimated accurately and where the use of the asset is constant from year to year.

Answer»

Fixed Installment Method of charging Depreciation:

(i) Under this method the amount of depreciation remains constant from year to year.

(ii) The original cost of the asset is reduced to zero at the end of its useful life.

(iii) This method is suitable for those assets whose useful life can be estimated accurately and where the use of the asset is constant from year to year.

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Explain the ‘Fixed Installment Method’ of charging depreciation.

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