As the name suggest double declining, the asset is depreciated twice the rate than straight line method. It is also called accelerated depreciation. It does not mean depreciation is higher, it depreciates higher amount in initial years of asset and gradually depreciation expenses decrease in later years of the asset as compared to straight line depreciation.
Steps to calculate double declining method are as follows −
Advantages are as follows −
Disadvantages are mentioned below −
Let after depreciation by double decline method …. Year 2 expense be YYYY
Then journal entry inn year 2 will be