Q.If the rate of depreciation is same, then the amount of depreciation under Straight Line method vis-a-vis Written Down Value method will be :

With the same rate, SLM and WDV depreciation are equal in year 1 but SLM becomes higher than WDV in later years.

Compare the two methods at the same rate of depreciation:

• Straight Line Method (SLM): depreciation = rate × original cost every year, so the amount stays constant.
• Written Down Value Method (WDV): depreciation = rate × book value (reducing balance), so the amount decreases each year.

First year: both are calculated on the same original cost, so the depreciation amounts are equal.

Subsequent years: SLM continues on the full cost (unchanged), whereas WDV is charged on a smaller written-down balance, so the WDV amount falls. Therefore the SLM amount becomes higher than the WDV amount from the second year onwards.

Example (cost ₹1,00,000, rate 10%):

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