SSC JE Civil Engineering 29-Oct-2020 Shift 1 Paper

Question : 179 of 200

Marks: +1, -0

Which of the following expression is used to calculate 'Annual depreciation' by straight line method? Where 'O' is original value, 'S' is scrape value and 'N' life of structure in years.

$\S / (\O × \N)$
$(\O - \S) / \N$
$\O / (\S × \N)$
$(\O + \S) / \N$

Validate

Solution:

Explanation:
Depreciation: Decrease or loss in the value of a property due to structural deterioration use, wear and tear, decay and obsolescence.
Method of calculating depreciation:
1. Straight line method
2. Constant percentage method
3. Sinking fund method
4. Quality survey method
Straight line method:
Annual depreciation (D)

= \text "(Original cost – Scrap value)"/ \text "Life in years"

\D = (\O - \S)/\N

Book value after N years = Original cost

- \N × \D

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