Depreciation calculator SLM vs WDV
Enter the cost, the date you bought the asset and the rate. You get the yearly schedule, the sale profit or loss, the journal entries and a chart comparing both methods, with every step written out.
This is what the asset is still worth in the books after 3 financial years.
| Year | Opening | Months | Depreciation | Closing |
|---|---|---|---|---|
| 2022-23 | 1,00,000 | 6 | 5,000 | 95,000 |
| 2023-24 | 95,000 | 12 | 10,000 | 85,000 |
| 2024-25 | 85,000 | 12 | 10,000 | 75,000 |
Book value by year, both methods
- Straight line (same charge every year)
- Written down value (smaller charge every year)
Why WDV never reaches zero
WDV takes a fixed % of the amount that is left. The slice gets smaller each year, so the line flattens out, but a % of a positive number is never zero. The straight line falls by the same amount each year and reaches the scrap value.
Working
- Total cost = ₹1,00,000.
- Straight line: total cost × 10% = ₹10,000 a year, charged on the original cost every year.
- Bought on the 1st — the purchase month counts in full.
- 2022-23: ₹10,000 × 6/12 = ₹5,000. Closing book value ₹95,000.
- 2023-24: ₹10,000 × 12/12 = ₹10,000. Closing book value ₹85,000.
- 2024-25: ₹10,000 × 12/12 = ₹10,000. Closing book value ₹75,000.
Journal entries
| Particulars | Dr ₹ | Cr ₹ |
|---|---|---|
| Depreciation A/c | 5,000 | |
| To Asset A/c | 5,000 | |
| Depreciation for 2022-23 | ||
| Depreciation A/c | 10,000 | |
| To Asset A/c | 10,000 | |
| Depreciation for 2023-24 | ||
| Depreciation A/c | 10,000 | |
| To Asset A/c | 10,000 | |
| Depreciation for 2024-25 | ||
Common mistakes in the exam
- Straight line is charged on the original cost every year. WDV is charged on the reducing balance, so the charge falls each year.
- In the first year, count only the months you owned the asset. Bought 1 Oct means 6 months in a March year-end, not 12.
- With a sale, depreciation runs up to the date of sale, not to the end of that financial year.
- Scrap value is not depreciated. The asset stops at scrap, so the book value never goes below it.
- Installation and freight are part of the cost. Add them before you depreciate.
What depreciation does
A fixed asset such as a machine, a van or a computer loses value as it is used. Depreciation spreads its cost over the years it helps the business earn money. Each year, the charge goes to the Depreciation account, and the asset’s book value (cost less depreciation so far) comes down.
Straight line vs written down value
Take a ₹1,00,000 machine at 10%, bought on 1 October 2022, with a March year-end.
- Straight line: 10% of the original cost is ₹10,000 a year. The first year has only six months, so ₹5,000. Then ₹10,000 each year. Closing book value after three years: ₹75,000.
- Written down value: 10% of the book value left. First year ₹5,000, closing ₹95,000. Second year 10% of ₹95,000 = ₹9,500, closing ₹85,500. Third year ₹8,550, closing ₹76,950.
Both methods start from the same rate. The WDV charge shrinks each year, so its book value falls more slowly than the straight line’s. The chart above shows both lines together.
Part years and sales
Depreciation is charged for whole months. An asset bought on the 1st counts from that month. An asset bought mid-month counts from the next month. When you sell an asset, charge depreciation only up to the sale. Then work out the profit or loss: sale price minus book value on the day of sale. A sale for less than the book value is a loss. The profit or loss on sale is transferred to the Profit and Loss Account.
Where this fits in your syllabus
Depreciation is part of the final accounts chapters in Class 11 Accountancy. Read the chapter notes, then use this tool to check your schedule and journal entries.
Learn the chapter
A learning aid. Follow the method your question asks for, and round as the question says. Check the rules against your textbook and your teacher. This is not financial or tax advice.
By the ACES team · Last checked 6 November 2026