B. DECLINING CHARGE METHODS :
The amount of depreciation charged decreases for each subsequent year of the asset’s life. This method can be applied:

(a) When the asset becomes old and receipts decline or

(b) When it is necessary to charge depreciation according to the asset’s expected earnings.

The following three methods fall in this category.

1. Diminishing Balance Method (Reducing Balance Method)

2. Sum of Years’ Digits Method

3. Double Declining Balance Method