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Class 11 and Class 12 commerce students, and CA Foundation aspirants, studying Financial Accounting.

Can I test myself on "Mileage or Kilometre Method of Depreciation | Example"?

Yes — this page includes a short interactive quiz so you can check your understanding straight away.

Mileage or Kilometre Method of Depreciation | Example

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Quick Overview & Key Takeaways

Focus Topic:Mileage or Kilometre Method of Depreciation | Example

Estimated Reading Time:2 mins

Mileage or Kilometre Method of Depreciation is very much similar to the Machine hour rate method. But it is applied on the vehicle instead of the machine. So…
Syllabus-aligned study material with detailed definitions, formats, and practical examples.
Interactive check: Includes a custom practice quiz at the bottom of the article to self-evaluate knowledge.

Mileage or Kilometre Method of Depreciation

This method of depreciation is applied in the following cases: -

Where we can calculate the accurate life of an asset in Kilometres.
Where the life of an asset is certain.

Example of Mileage or Kilometre Method of Depreciation:

31/03/2019 - 9,000
31/03/2020 - 10,000
31/03/2021 - 9,500
31/03/2022 - 9,700
31/03/2023 - 12,000

Solution : -Formula:-

The Formula of Kilometre Method of Depreciation

So now, we will calculate the amount of depreciation with above shown formula: Total Cost of an asset = Scrap value of an asset = 1,00,000/-Total life of an asset(in hours) = 1,00,000 hoursSo, Depreciation(per kilometre) =

= Rs. 10 per kilometre

Year	Total working hour (per year)	Rate of Depreciation (Per Kilometre)	Amount of Depreciation for Year
2018-19	9,000	10	90,000
2019-20	10,000	10	1,00,000
2020-21	9,500	10	95,000
2021-22	9,700	10	97,000
2022-23	12,000	10	1,20,000

Mileage or Kilometre Method of Depreciation | Example

Quick Overview & Key Takeaways

This method of depreciation is applied in the following cases: -

Example of Mileage or Kilometre Method of Depreciation:

Journal entries or ledger are the same with the following methods:

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