What is the distinction between straight line balance method and diminishing balance method?

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1249070

2026-05-03 10:00

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Straight line method is the method in which asset cost is equally distributed over the entire life of asset and hence the amount of depreciation remain same for every month till salvage value.

Under diminishing line method depreciation is charged on diminishing balance of asset every year for the life of asset and the amount remain at the end of life of asset is the salvage value.

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