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Depreciation by written down value method: Class 11 practice

Under WDV, a fixed percentage is charged on the opening book value each year, so depreciation falls every year.. Read the method, follow the three worked examples, then try the six questions.

What you should know first

  • Percentages

The idea behind depreciation by written down value method

Under WDV, a fixed percentage is charged on the opening book value each year, so depreciation falls every year.

Step-by-step method

  1. Depreciation = rate × opening book value.
  2. Closing book value = opening − depreciation.
  3. Repeat for each year.

Worked example 1 (Basic)

An asset costs ₹1,80,000. Depreciation is 25% p.a. on WDV. Find depreciation for each of the first 2 years and the book value at the end.

  1. Year 1: 25% of ₹1,80,000 = ₹45,000
  2. Year 2: 25% of ₹1,35,000 = ₹33,750
  3. Answer: ₹45,000, ₹33,750; book value ₹1,01,250

Worked example 2 (Standard)

An asset costs ₹1,10,000. Depreciation is 20% p.a. on WDV. Find depreciation for each of the first 3 years and the book value at the end.

  1. Year 1: 20% of ₹1,10,000 = ₹22,000
  2. Year 2: 20% of ₹88,000 = ₹17,600
  3. Year 3: 20% of ₹70,400 = ₹14,080
  4. Answer: ₹22,000, ₹17,600, ₹14,080; book value ₹56,320

Worked example 3 (Challenge)

An asset costs ₹1,60,000. Depreciation is 10% p.a. on WDV. Find depreciation for each of the first 4 years and the book value at the end.

  1. Year 1: 10% of ₹1,60,000 = ₹16,000
  2. Year 2: 10% of ₹1,44,000 = ₹14,400
  3. Year 3: 10% of ₹1,29,600 = ₹12,960
  4. Year 4: 10% of ₹1,16,640 = ₹11,664
  5. Answer: ₹16,000, ₹14,400, ₹12,960, ₹11,664; book value ₹1,04,976

Common mistakes and misconceptions

  • Charging on the original cost every year (that's SLM)
  • Compounding errors from rounding

Practice questions

  1. (Basic) An asset costs ₹80,000. Depreciation is 20% p.a. on WDV. Find depreciation for each of the first 2 years and the book value at the end.
  2. (Basic) An asset costs ₹1,60,000. Depreciation is 20% p.a. on WDV. Find depreciation for each of the first 2 years and the book value at the end.
  3. (Standard) An asset costs ₹90,000. Depreciation is 20% p.a. on WDV. Find depreciation for each of the first 3 years and the book value at the end.
  4. (Standard) An asset costs ₹1,10,000. Depreciation is 15% p.a. on WDV. Find depreciation for each of the first 3 years and the book value at the end.
  5. (Challenge) An asset costs ₹1,10,000. Depreciation is 10% p.a. on WDV. Find depreciation for each of the first 4 years and the book value at the end.
  6. (Challenge) An asset costs ₹40,000. Depreciation is 25% p.a. on WDV. Find depreciation for each of the first 4 years and the book value at the end.

Answer key with full working

  • Q1: Year 1: 20% of ₹80,000 = ₹16,000 → Year 2: 20% of ₹64,000 = ₹12,800 → Answer: ₹16,000, ₹12,800; book value ₹51,200
  • Q2: Year 1: 20% of ₹1,60,000 = ₹32,000 → Year 2: 20% of ₹1,28,000 = ₹25,600 → Answer: ₹32,000, ₹25,600; book value ₹1,02,400
  • Q3: Year 1: 20% of ₹90,000 = ₹18,000 → Year 2: 20% of ₹72,000 = ₹14,400 → Year 3: 20% of ₹57,600 = ₹11,520 → Answer: ₹18,000, ₹14,400, ₹11,520; book value ₹46,080
  • Q4: Year 1: 15% of ₹1,10,000 = ₹16,500 → Year 2: 15% of ₹93,500 = ₹14,025 → Year 3: 15% of ₹79,475 = ₹11,921 → Answer: ₹16,500, ₹14,025, ₹11,921; book value ₹67,554
  • Q5: Year 1: 10% of ₹1,10,000 = ₹11,000 → Year 2: 10% of ₹99,000 = ₹9,900 → Year 3: 10% of ₹89,100 = ₹8,910 → Year 4: 10% of ₹80,190 = ₹8,019 → Answer: ₹11,000, ₹9,900, ₹8,910, ₹8,019; book value ₹72,171
  • Q6: Year 1: 25% of ₹40,000 = ₹10,000 → Year 2: 25% of ₹30,000 = ₹7,500 → Year 3: 25% of ₹22,500 = ₹5,625 → Year 4: 25% of ₹16,875 = ₹4,219 → Answer: ₹10,000, ₹7,500, ₹5,625, ₹4,219; book value ₹12,656

Syllabus note

This skill is listed under "Depreciation" for Class 11 in the NCERT/CBSE books. ICSE, IGCSE, IB and state boards may teach it in a different chapter or year.

Answers on this page are generated and automatically re-checked by a second, independent calculation. They have not been reviewed by a teacher — if you spot a problem, tell us on WhatsApp.

Related practice and notes

Frequently asked questions

Which chapter is depreciation by written down value method in?

"Depreciation", Class 11 Accountancy (NCERT/CBSE). Other boards may place it differently.

How were the answers checked?

Answers on this page are generated and automatically re-checked by a second, independent calculation. They have not been reviewed by a teacher — if you spot a problem, tell us on WhatsApp.

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