Difference Between Straight Line and Diminishing Balance Method

Need help with your homework? Look no further! Our subject experts are ready to effortlessly handle your assignments, so you can finally say goodbye to stress and hello to top grades.

Please enable JavaScript in your browser to complete this form.
Click or drag files to this area to upload. You can upload up to 3 files.
Get a response in under 15 min

Depreciation is the amount of wear and tear that a particular asset has to face which results in their loss of value over a certain point of time. Initially, this asset helps in improving production quality of the company to which it is associated. However, after a certain point of time, it becomes liability for that company.

To ensure that this liability does not create problems in regards to getting the actual profit rate of the company, it is important that there be a rate against which depreciation is calculated to segregate it from rest of the business.

To calculate this depreciation rate, there are two modes:

Straight Line Method

Diminishing Balance Method

Though both these methods are extremely useful, yet there is a difference regarding which method should be followed.

Here is a distinction between these 2 methods.

  • Zero Level:

STRAIGHT LINE METHOD:In this case, the total value of assets can be written down to zero in certain cases.

DIMINISHING BALANCE METHOD: In this case, it is important that a positive value is to be maintained at every step to ensure that the process used does not fall for any calculation mistake.

  • Calculation of Depreciation:

STRAIGHT LINE METHOD:In this case, total depreciation is calculated at total cost of assets. This total cost of assets includes installation charges, building charges and such other charges.

DIMINISHING BALANCE METHOD:  In this case, the reducing balance of assets is taken into consideration.

  • Depreciation Amount:

STRAIGHT LINE METHOD:  As per this method, it can be seen that every year has the same amount of depreciation being charged on the assets.

DIMINISHING BALANCE METHOD:  In this case amount of depreciation keeps reducing with every year.

  • Income Tax Laws:

STRAIGHT LINE METHOD:  Though this method is applied in case of most small firms, the income tax department does not recognize this process.

DIMINISHING BALANCE METHOD:  This is the most acceptable process by the income tax department.

  • Effect on Profit and Loss Account:

STRAIGHT LINE METHOD:  Since in initial years the assets have high productivity, hence depreciation and repairs are lower in monetary terms. However, with passage of years, cost of this increases, with high repairing and maintenance charges attached.

DIMINISHING BALANCE METHOD:  In this case, similar charges are borne every year given that depreciation rates decrease and repairing costs increase.

  • Suitable for:

STRAIGHT LINE METHOD:  This is suitable for those assets which are of lower value.

DIMINISHING BALANCE METHOD:  This is specifically suitable for those assets which have very high value associated with them.

Links of Previous Main Topic:-

Links of Next Accounting Topics:-

Homework Blues?

Get expert help with homework for all subjects.

  • NPlagiarism-free work
  • NHonest Pricing
  • NMoney-back guarantee

Latest Reviews

Solved Sample Works

Accounting Homework

Corporate Accounting Sample

Biology Homework

Genetics Assignment Sample

Essay Writing Help

Business Plan Sample

Homework Help FAQs

Our Answers to Your Questions

How do I submit my homework?

Getting homework help is very simple with us. Students can either send us the homework via email or they can upload it to our online form here. For a quicker response, You can also chat with us at WhatsApp and submit homework directly. You are sure to get a response from our side within 10 minutes.

How much will my homework cost?

The cost of paying someone to do your homework varies depending on the service and the type of assignment. We have listed our standard pricing plans for popularly used writing services. For other kind of assignments, You can get a free instant quote from us using our online form.

We also accept partial payment to start working on your assignment help. You can pay the remaining amount when your task gets completed. No pressure of up-front payment. No hidden order costs.

Can I receive help with my homework anytime?

Yes, you can receive help with your homework anytime with us. Our online homework help services are available 24/7, allowing you to receive assistance with your homework anytime, anywhere.

For urgent homework requests, reach out to us through our LiveChat or WhatsApp channels and one of our friendly support agents will assist you in finding the right expert for your online homework help request immediately. With our services, you can rely on 24/7 availability and meeting deadlines.

Are online homework websites budget-friendly for students like me?

Yes, Our Online Homework Help websites are an affordable solution for you as a student. Compared to traditional tutoring services, MyHomeworkHelp prices their homework help services honestly and within the budget of college students. This makes it easier for you to receive assistance with your homework without breaking the bank.

What is your plagiarism-free policy?

At myhomeworkhelp, we take plagiarism very seriously and ensure that all solutions provided by our tutors are original and authentic. Our tutors are trained to provide custom-made solutions, tailored specifically to meet the requirements of each student. We do not provide pre-written papers. All our homeswork solutions are made from scratch, guaranteeing 100% orignal homework answers.

Additionally, we have strict plagiarism-detection tools in place to check all submissions for authenticity.

Is using an Online Homework Help Service cheating?

Using online homework help services is not equivalent to cheating. Our services are intended to support students with their homework and provide them with the resources they need to succeed academically. With the help of our online homework help services, students can receive immediate assistance with their homework from any location, at any time.

At myhomeworkhelp, we are committed to promoting academic integrity. Our tutors provide solutions that serve as guides for drafting your own work. It is not acceptable to submit someone else's work as your own, as this constitutes academic plagiarism.

Can I chat with my tutor?

Using our secure chat board, you can now chat directly with your assigned tutor. The chats are encrypted both ways to secure your privacy. This makes your contact with the tutor directly & confidentially, so you can better explain any requirements or changes if needed or just need updates.

You can't contact the experts outside of chat board platform. Sharing any personal information, including but not limited to contact information, goes against our Terms and Conditions and therefore may result in permanently blocking you from the platform. We take any personal data very seriously and we do it for the safety of our users.

Know more about chat board here.

What is your money-back guarantee policy?

It’s worth noting that our online homework help service rarely leads to disappointment among students. Our expert tutors, along with our support and quality assurance team, are dedicated to providing the best possible experience for our customers. However, if for any reason a student is unsatisfied with their homework help solution, we offer unlimited revisions until they are fully satisfied.

In the rare event that a student remains unsatisfied even after revisions, we offer a money-back guarantee. We want all of our students to feel confident and secure when they turn to us for assistance with their homework, and this guarantee is just one way that we demonstrate our commitment to providing the best possible service. If you have any concerns about our services or the quality of the work you receive, please contact us for support.

What is the expertise of the tutor assigned to do my homework?

At myhomeworkhelp, we take pride in our team of qualified and experienced tutors. All of our tutors undergo a rigorous selection process and are required to have a minimum of a master's degree in their respective fields. Additionally, they must pass a series of tests to demonstrate their proficiency and ability to deliver quality work. We believe in transparency and providing our clients with the best possible service. You can be confident in the expertise of the tutor assigned to do your homework.

What about privacy & confidentiality?

Using My Homework Help is absolutely safe. We care about your security, therefore we encrypt all personal data to make every user feel safe while using our services and we don’t share any personal information with any third parties without your permission. Your credit card information is not stored anywhere at My Homework Help, and use of PayPal relies on their secure payment networks. Your identity, payment and homework are in safe hands. You can always be certain of getting professional help and remaining anonymous, while using My Homework Help.