Sum of Years of Digits Method | Depreciation Part 2 | CA Foundation Accounts | By Gaurav Chauhan
Автор: Simplified Accounts With Gaurav
Загружено: 2026-02-01
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📘 Depreciation – Part 2 | Sum of Years of Digits Method (SYD)
🎓 CA Foundation Accounts
👨🏫 By Gaurav Chauhan
In this video, we explain the Sum of Years of Digits Method, an accelerated method of depreciation commonly asked in CA Foundation exams.
🔍 What is Sum of Years of Digits Method?
Under this method, depreciation is charged more in the earlier years and less in later years of an asset’s life.
The total number of years is added, and depreciation is calculated in the ratio of remaining useful life to the sum of years.
📌 This method is useful when:
✔ Asset gives more benefit in initial years
✔ Repairs increase over time
✔ Higher depreciation is justified in early years
🧮 In this lecture, you will learn:
👉 Concept of SYD Method
👉 Formula and calculation
👉 Step-by-step numerical approach
👉 Exam-oriented presentation
👉 Common mistakes to avoid
🎯 Perfect for CA Foundation students preparing for Accounts exams
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