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

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) =

(Original cost – Scrap value)

Life in years

D=

(O−S)

N

Book value after N years = Original cost −N×D