Sum of years digits (or SYD) method. This method is on the paltern of Diminishing Balance Method. The amount of depreciation to be charged to the Profit and Loss Account under this method goes on decreasing every year. The depreciation is calculated
Double declining balance method. This method is similar to reducing or declining balance method explained above except that the rate of depreciation is charged at the rate which is twice the straight line rate. While computing this rate two things have bee,n kept in mind;
(a) No allowance is to be made for the scrap value of the asset.
(b) The total cost should not be reduced by charging the depreciation to an amount lower than the estimated scrap value of the asset.
The declining charge methods of depreciation are preferred over unifonn charge methods of depreciation on account of the following reasons:
(1) The total cost for use of the asset is evenly spreaded over the useflul life of the asset. Such cost of the use of the asset includes both depreciation and repairs. With the asset growing order.