1.

Straight line method/fixed installment method

Important point: asset value does not count the cost after purchasing it such as fuel on machine
or grease, assets only counts the installation charges of machine.
 Cost of asset-scrap value/ useful life
 (Cost of asset + intsllation charges-scrap value)rate/100
2. Diminishing/declining/reducing method
 Formula=1/usefule life ( 2*balance)
3. Sum of year digit method
 Remaining no of years/sum of total no of years *( cost-s.v)
4. Unit of production method
 Cost-salvage value/estimated capacity
5. Annuity method
This will increase the value of asset every year, extra depreciation will be charged
This method is followed in lease.
Multiply annuity value by value of asset.