Written down value method is also known as

It is also known as 'dimnishing balance method', since depreciation is charged on the written down value. For ex a machinery is purchased for Rs 50,000 and scrap value is Rs 5,000 and the rate is 10%. The depreciation for 1st year would be 10% of Rs. 45,000 that is Rs. 4,500. For the 2nd year it would be calculated on 45,000-4,500 = Rs. 40,500 that is Rs. 4,050 and so on. Hence, the depreciation charged reduces every year.