APR/MAY-'05/EE1451-Answer Key

EE1451-ELECTRIC ENERGY GENERATION UTILIZATION AND CONSERVATION

April/May 2005 1 .Nicrome (Nickel-80%+chromium-20%) -is suitable for temperatures upto 1150o and for work in severe conditions. 2.1.Butt welding 2.Flash welding 3.Spot welding 4. Seam welding 5.Projection welding 3. lumen The lumen is defined in relation to the candela by 1 lm = 1 cdsr That is, a light source that uniformly radiates one candela in all directions radiates a total of 4 lumens Lux: The lux (symbol: lx) is the SI unit of illuminance and luminous emittance. It is used in photometry as a measure of the apparent intensity of light hitting or passing through a surface Lux is a derived unit based on lumen, and lumen is a derived unit based on candela. One lux is equal to one lumen per square metre, where 4 lumens is the total luminous flux of a light source of one candela of luminous intensity: 1 lx = 1 lmm-2 = 1 cdsrm2. 4. luminous efficiency - 40W incandescent lamp 1.9% luminous efficiency - 40W fluorescent lamp 8-11% 5.Tractive effort: "The force exerted at the edge of the driving wheel of a locomotive expressed in pounds 5. 1.Cheaper method 2.It has smooth and rapid acceleration and braking 3. Maintenance cost is less. 4.It has very high starting torque.

APR/MAY-'05/EE1451-Answer Key 6. The electrochemical equivalent of a substance is equal to the gram-atomic or gram-molecular mass of this substance divided by the number of electrons involved in the electrode reaction. 7. The battery capacity that battery manufacturers print on a battery is usually the product of 20 hours multiplied by the maximum constant current that a new battery can supply for 20 hours at 68 F (20 C), down to a predetermined terminal voltage per cell. 8. The judicious and effective use of energy to minimize energy cost and maximize profits. 10. Cost-benefit analysis is a term that refers both to:

helping to appraise, or assess, the case for a project or proposal, which itself is a process known as project appraisal; and an informal approach to making decisions of any kind.

PART-B 11.i)Sodium vapour lamp Construction -----------------------(3) Diagram ----------------------------(2) Operation----------------------------(3) Sodium vapor lamp A sodium vapor lamp is a gas discharge lamp which uses sodium in an excited state to produce light. There are two varieties of such lamps: low pressure and high pressure. High pressure Sodium vapor lamp

Theory of operation An amalgam of metallic sodium and mercury lies at the coolest part of the lamp and provides the sodium and mercury vapor in which the arc is drawn. The temperature of the amalgam is determined to a great extent by lamp power. The higher the lamp power, the higher will be the amalgam temperature. The higher the temperature of the amalgam, the higher will be the mercury and sodium vapor pressures in the lamp. An

APR/MAY-'05/EE1451-Answer Key increase in these metal pressures will cause a decrease in the electrical resistance of the lamp. For a given voltage, there are generally three modes of operation: The lamp is extinguished and no current flows. The lamp is operating with liquid amalgam in the tube. The lamp is operating with all amalgam evaporated. The first and last states are stable, because the lamp resistance is weakly related to the voltage, but the second state is unstable. Any anomalous increase in current will cause an increase in power, causing an increase in amalgam temperature, which will cause a decrease in resistance, which will cause a further increase in current. This will create a runaway effect, and the lamp will jump to the high-current state (#3). Since actual lamps are not designed to handle this much power, this would result in catastrophic failure. Similarly, an anomalous drop in current will drive the lamp to extinction. It is the second state which is the desired operating state of the lamp, because a slow loss of the amalgam over time from a reservoir will have less effect on the characteristics of the lamp than a fully evaporated amalgam. The result is an average lamp life in excess of 20,000 hours In practical use, the lamp is powered by an AC voltage source in series with inductive "ballast" in order to supply a nearly constant current to the lamp, rather than a constant voltage, thus assuring stable operation. The ballast is usually inductive rather than simply being resistive which minimizes resistive losses. Also, since the lamp effectively extinguishes at each zerocurrent point in the AC cycle, the inductive ballast assists in the reignition by providing a voltage spike at the zero-current point. High pressure sodium lamps are quite efficient about 100 lm/W, up to 150 lm/W, when measured for photopic lighting conditions. They have been widely used for outdoor lighting such as streetlights and security lighting.

APR/MAY-'05/EE1451-Answer Key

11)ii)

(i) Illumination at A = illumination due to lamp L1 + Illumination due to lamp L2

Illuminationat A= (ii) Since point C is symmetrically situated between the two lamps its illumination is twice that due to either lamp = Illumination at C = 12)a)i) Ajax-Wyatt Induction furnace Construction -----------------------(2) Diagram ----------------------------(2) Operation----------------------------(3) Merits &Demerits -----------------(1)

APR/MAY-'05/EE1451-Answer Key

12)a)ii)

APR/MAY-'05/EE1451-Answer Key Current flowing through the material, 12)b)i)Arc Welding Principle of operation of Arc Welding --------------(4) Welding is a material joining process that produces coalescence * of materials by heating them to the welding temperature with or without the application of pressure or by the application of pressure alone, and with or without the use of filler metal. Applications: It is used to replace riveted or bolted joints in the construction of ships, bridges steel frame, buildings, tank pipe lines etc *The growing together or growth into one body of the materials being welded. Advantages: 1. Welding is the lowest cost joining method 2. It affords lighter weight through better utilization of materials. 3. It joins all commercial metals. 4. It provides design flexibility. Disadvantages 1. Some welding depends on the human factor. 2. It often needs internal inspection. TYPES OF WELDING I. Resistance welding 1. Spot welding 2. Seam welding 3. Projection welding 4. Butt welding II. Arc welding 1. Carbon arc welding 2. Metal arc welding 3. Atomic hydrogen welding III. Modern welding Ultrasonic welding Comparison &Contrast of Carbon &metal arc Weldiing -------(4) An electric arc is produced by bringing two conductors (electrode and metal piece) connected to suitable source of electric current, momentarily in contact and the separating by a small distance. The current continues to flow across the small gap and gives intense heat. The heat developed is utilized to melt the part of the work piece, and the filler metal and thus forms the joint. It is used for joining of metal parts, repair of fractured castings and the filling by the deposition of new metal on worn out parts. 1. Carbon arc welding

APR/MAY-'05/EE1451-Answer Key

For heavier welds or where heavy build-up is required, carbon arc is employed with carbon electrode size up to 25mm diameter and current up to 800A. Arc is struck between carbon electrode and work piece and filler electrode may be used for required deposition of metal. To avoid transfer of electrode material into the weld metal, electrode is always kept negative and work as positive. Due to high rate of heat production, carbon arc welding is used for copper welding as copper has high thermal conductivity. 2.Metal arc welding

In metal arc welding, arc is drawn between work piece and wire electrode. The wire is melted down into the weld. Bare metal arc welding is not considered satisfactory. During welding process, both the globules of molten electrode wire and parent metal are exposed to the oxidizing and nitrating action of oxygen and nitrogen of the atmosphere. Oxides reduce the ductility of the weld and nitrides produce embrittlement in the weld deposit. Thus the weld lacks required strength and ductility. So it is preferred for unimportant works and for metal deposition on railway wagon wheels, travelling crane wheels etc... 12)b)ii)Arc resistance RA=EA/I =50/5000 =0.01

Total resistance in the secondary circuit=0.012 Total reactance in the secondary circuit=0.004

APR/MAY-'05/EE1451-Answer Key ZS=R2+X2=0.0126 VS=I ZS=63.25 Volts tan=X/R=0.333 =1118.435 cos=0.9487 power drawn from the supply= 3ESIS cos =900KW

13)a)D.C.Series motor suitable for electric traction: i)Starting characteristics ii)Operating characteristics iii )Mechanical characteristics iv)Regulation characteristics 13)a)ii)

---------------(8)

13)b)i)Tractive effort on a gradient: Diagram -----------------(2) Derivation ---------------(4) Co-efficient of adhesion ---------(2) MECHANICS OF TRAIN MOVEMENT

APR/MAY-'05/EE1451-Answer Key

Fig.4.4.Transmissionoftractiveeffort

How traction motor produces tractive effort at the train wheel is shown in fig.4.4. Armature of the driving motor drives pinion which meshes with gear wheel keyed to the driving axle. Let, T=the torque exerted by motor F=the tractive effort exerted by driving wheel F=the tractive effort exerted by the pinion d= diameter of pinion in meter d= diameter of gear wheel in meter D= diameter of driving wheel in meter Tractive effort exerted by the pinion

= Efficiency of transmission of power from motor to driving axle

Coefficient of adhesion The above equation suggests that tractive effort at the driving wheels can be increased by increasing the torque exerted by the motor. This is possible up to a certain limit after which any increase in the motor torque does not increase the tractive effort but causes driving wheels to slip. It has been found that the maximum value of tractive effort at which driving wheels will not slip, depends upon the dead weight over the driving axle. F W F = W if F is expressed in Newton and W in tonnes

APR/MAY-'05/EE1451-Answer Key Where, is called the coefficient of adhesion Coefficient of adhesion in electric train is greater than steam traction due to the following two reasons. 1. In electric traction the torque exerted is continuous whereas in steam engine the torque is pulsating which causes jolting and skidding. In electric traction the driving wheels are distributed over a much greater length whereas steam engine they are close to each other 13)b)ii)Series parallel control i) Series parallel starting shunt transition -------------(4) ii) Series parallel starting bridge transition -------------(4) Series Parallel Control This method is usually employed in electric traction as motors employed for traction work are usually 2, 4, 6 or greater than even. First consider two motors; these two motors are connected in series with each other and starting resistance. At the starting instant, the voltage across the motors is approximately equal to zero and voltage drop across starting resistance is maximum and equal to zero. As the motor speed up, the external resistance is gradually reduced to zero. During this period the voltage acting across each motor gradually increases from 0 to V/2.

Fig.4.7(a)Seriesparallelcontrol

Letthetimerequiredbehalfoftotalacceleratingperiodi.eT/2seconds.

Now, the motors are changed from series grouping to parallel grouping (starting to running). Starting resistance is again in the motors circuit. The voltage across the each motor is equal to V/2 volts .The current per motor is I ampere, Current drawn from the line is 2I amperes. As the motors speed up, the external resistance is gradually reduced to zero and voltage across each motor increases gradually from V/2 to V volts.

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APR/MAY-'05/EE1451-Answer Key

Fig.4.7(b)Seriesparallelcontrol

VIT

14)a) Electroplating is a plating process that uses electrical current to reduce cations of a desired material from a solution and coat a conductive object with a thin layer of the material, such as a metal. Electroplating is primarily used for depositing a layer of material to bestow a desired property (e.g., abrasion and wear resistance, corrosion protection, lubricity, aesthetic qualities, etc.) to a surface that otherwise lacks that property. Another application uses electroplating to build up thickness on undersized parts.

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APR/MAY-'05/EE1451-Answer Key The process used in electroplating is called electrodeposition. It is analogous to a galvanic cell acting in reverse. The part to be plated is the cathode of the circuit. In one technique, the anode is made of the metal to be plated on the part. Both components are immersed in a solution called an electrolyte containing one or more dissolved metal salts as well as other ions that permit the flow of electricity. A rectifier supplies a direct current to the anode, oxidizing the metal atoms that comprise it and allowing them to dissolve in the solution. At the cathode, the dissolved metal ions in the electrolyte solution are reduced at the interface between the solution and the cathode, such that they "plate out" onto the cathode. The rate at which the anode is dissolved is equal to the rate at which the cathode is plated, vis-a-vis the current flowing through the circuit. In this manner, the ions in the electrolyte bath are continuously replenished by the anode. Other electroplating processes may use a nonconsumable anode such as lead. In these techniques, ions of the metal to be plated must be periodically replenished in the bath as they are drawn out of the solution. Limitations: Obtaining a uniform thickness with electroplating can be difficult depending on the geometry of the object being plated. The plating metal is preferentially attracted to external corners and protrusions, but unattracted to internal corners and recesses. These difficulties can be overcome with multiple anodes or a specially shaped anode that mimics the object geometry, however both of these solutions increase cost.[

14)b)Nickel Cadmium Cell: The nickel-cadmium battery (commonly abbreviated NiCd or nicad) is a type of rechargeable battery using nickel oxide hydroxide and metallic cadmium as electrodes. The abbreviation NiCad is a registered trademark of SAFT Corporation, although this brand name is commonly used to describe all nickel-cadmium batteries. On the other hand, the abbreviation NiCd is derived from the chemical symbols of nickel (Ni) and cadmium (Cd), though it is not to be confused with a chemical formula. There are two types of NiCd batteries: sealed and vented. When compared to other forms of rechargeable battery, the NiCd battery has a number of distinct advantages.

The batteries are more difficult to damage than other batteries, tolerating deep discharge for long periods. In fact, NiCd batteries in long-term storage are typically stored fully discharged. This is in contrast, for example, to lithium ion batteries, which are highly volatile and will be permanently damaged if discharged below a minimum voltage.

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APR/MAY-'05/EE1451-Answer Key

NiCd batteries typically last longer, in terms of number of charge/discharge cycles, than other rechargeable batteries. Compared to lead-acid batteries, NiCd batteries have a much higher energy density. A NiCd battery is smaller and lighter than a comparable lead-acid battery. In cases where size and weight are important considerations (for example, aircraft), NiCd batteries are preferred over the cheaper lead-acid batteries. In consumer applications, NiCd batteries compete directly with alkaline batteries. A NiCd cell has a lower capacity than that of an equivalent alkaline cell, and costs more. However, since the alkaline battery's chemical reaction is not reversible, a reusable NiCd battery has a significantly longer total lifetime. There have been attempts to create rechargeable alkaline batteries, such as the rechargeable alkaline, or specialized battery chargers for charging single-use alkaline batteries, but none that has seen wide usage. The terminal voltage of a NiCd battery declines more slowly as it is discharged, compared with carbon-zinc batteries. Since an alkaline battery's voltage drops significantly as the charge drops, most consumer applications are well equipped to deal with the slightly lower NiCd voltage with no noticeable loss of performance. Nickel-metal hydride (NiMH) batteries are the newest, and most similar, competitor to NiCd batteries. Compared to NiCd, NiMH batteries have a higher capacity and are less toxic, and are now more cost effective. However, a NiCd battery has a lower self-discharge rate (for example, 20% per month for a NiCd, versus 30% per month for a traditional NiMH under identical conditions), although low self-discharge NiMH batteries are now available, which have substantially lower self-discharge than either NiCd or traditional NiMH. This results in a preference for NiCd over NiMH in applications where the current draw on the battery is lower than the battery's own self-discharge rate (for example, television remote controls). In both types of cell, the self-discharge rate is highest for a full charge state and drops off somewhat for lower charge states. Finally, a similarly-sized NiCd battery has a slightly lower internal resistance, and thus can achieve a higher maximum discharge rate (which can be important for applications such as power tools).

Disadvantages The primary trade-off with NiCd batteries is their higher cost and the use of cadmium. They are more costly than lead-acid batteries because nickel and cadmium are more costly materials. One of the NiCd's biggest disadvantages is that the battery exhibits a very marked negative temperature coefficient. This means that as the cell temperature rises, the internal resistance falls. This can pose considerable charging problems, particularly with the relatively simple charging systems employed for lead-acid type batteries. Whilst lead-

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APR/MAY-'05/EE1451-Answer Key acid batteries can be charged by simply connecting a dynamo to it, with a simple electromagnetic cut-out system for when the dynamo is stationary or an over-current occurs, the NiCd under a similar charging scheme would exhibit thermal runaway, where the charging current would continue to rise until the over-current cut-out operated or the battery destroyed itself. This is the principal factor that prevents its use as engine-starting batteries. Today with alternator-based charging systems with solid-state regulators, the construction of a suitable charging system would be relatively simple, but the car manufacturers are reluctant to abandon tried-and-tested technology. "Eveready" sealed nickel-cadmium batteries are ideally suited for use in many types of battery-operated equipment. Some of the many applications are listed here: Calculators Cassette players and recorders Dictating machines Digital Cameras Instruments Personal Pagers Photoflash equipment

15)a) Energy audit Introduction -----------------------(4) Need for Energy audit ----------------------(4) Various methods of energy audit -------------------(8) A systematic approach, to monitor industrial energy consumption and to pin-point sources of wastage, is known as Energy Audit. In the present energy scenario and the era industrial competition Energy Auditing has become a very important part of any industrial activity. An Energy Audit Study helps an organization to understand and analyse its energy utilisation and identify areas where energy use can be reduced, decide on how to budget energy use, plan & practice feasible energy conservation methods that will enhance their energy efficiency, curtail energy wastage and substantially reduce energy costs. The Energy Audit serves to identify all the energy streams in a facility, qualify energy usage with its discrete functions, in an attempt to balance the total energy input with its use. Energy Audit is thus the key to a systematic approach for decision-making in the area of Energy Management. As a result, the Energy Audit Study becomes an effective tool in defining and pursuing comprehensive Energy Management Programme (EMP). An Energy Audit Study includes

Auditing of Energy Consumption (including any heat and power generated)

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APR/MAY-'05/EE1451-Answer Key

General examination of work place (including physical condition of organisation, its processes, occupancy time, and variations in ambient temperature and energy consumption pattern etc.) Measurement of all energy flows( including testing of boiler or steam raising, heating equipment, refrigeration, etc.) Analysis and appraisal of energy usage.(e.g. specific fuel consumption, energyproduct interrelationship). Energy management procedures and methodology. Identification of energy improvement opportunities and recommendations for energy efficiency measures and quantification of implementation costs and paybacks. Identification of possible usages of co-generation, renewable sources of energy and recommendations for implementation, wherever possible, with cost benefit analysis.

The term energy audit is commonly used to describe a broad spectrum of energy studies ranging from a quick walk-through of a facility to identify major problem areas to a comprehensive analysis of the implications of alternative energy efficiency measures sufficient to satisfy the financial criteria of sophisticated investors. Three common audit programs are described in more detail below, although the actual tasks performed and level of effort may vary with the consultant providing services under these broad headings. The only way to insure that a proposed audit will meet your specific needs is to spell out those requirements in a detailed scope of work. Taking the time to prepare a formal solicitation will also assure the building owner of receiving competitive and comparable proposals. Preliminary Audit The preliminary audit alternatively called a simple audit, screening audit or walk-through audit, is the simplest and quickest type of audit. It involves minimal interviews with site operating personnel, a brief review of facility utility bills and other operating data, and a walk-through of the facility to become familiar with the building operation and identify glaring areas of energy waste or inefficiency. Typically, only major problem areas will be uncovered during this type of audit. Corrective measures are briefly described, and quick estimates of implementation cost, potential operating cost savings, and simple payback periods are provided. This level of detail, while not sufficient for reaching a final decision on implementing a proposed measures, is adequate to prioritize energy efficiency projects and determine the need for a more detailed audit. General Audit The general audit alternatively called a mini-audit, site energy audit or complete site energy audit expands on the preliminary audit described above by collecting more detailed information about facility operation and performing a more detailed evaluation

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APR/MAY-'05/EE1451-Answer Key of energy conservation measures identified. Utility bills are collected for a 12 to 36 month period to allow the auditor to evaluate the facility's energy/demand rate structures, and energy usage profiles. Additional metering of specific energy-consuming systems is often performed to supplement utility data. In-depth interviews with facility operating personnel are conducted to provide a better understanding of major energy consuming systems as well as insight into variations in daily and annual energy consumption and demand. This type of audit will be able to identify all energy conservation measures appropriate for the facility given its operating parameters. A detailed financial analysis is performed for each measure based on detailed implementation cost estimates, site-specific operating cost savings, and the customer's investment criteria. Sufficient detail is provided to justify project implementation. Investment-Grade Audit In most corporate settings, upgrades to a facility's energy infrastructure must compete with non-energy related investments for capital funding. Both energy and non-energy investments are rated on a single set of financial criteria that generally stress the expected return on investment (ROI). The projected operating savings from the implementation of energy projects must be developed such that they provide a high level of confidence. In fact, investors often demand guaranteed savings. The investment-grader audit alternatively called a comprehensive audit, detailed audit, maxi audit, or technical analysis audit, expands on the general audit described above by providing a dynamic model of energy use characteristics of both the existing facility and all energy conservation measures identified. The building model is calibrated against actual utility data to provide a realistic baseline against which to compute operating savings for proposed measures. Extensive attention is given to understanding not only the operating characteristics of all energy consuming systems, but also situations that cause load profile variations on both an annual and daily basis. Existing utility data is supplemented with submetering of major energy consuming systems and monitoring of system operating characteristics. 15)b)Depreciation and its objectives:-------------------------------(6) The value of the power plant decreases from its initial value to the salvage value at the end of its useful life. This depreciation is due to ageing, wear and tear of machinery, corrosion, weathering, inadequacy and obsolescence of equipment etc. At the end of the useful life of the plant, funds must be available to replace the equipment. The depreciation charge represents the amount which is set aside from income every year and placed in depreciation reserve. For calculating this charge, it is necessary to estimate the useful life of plant. METHODS OF DETERMINING DEPRECIATION
1. Straightlinemethod 2. Diminishingvaluemethod 3. Sinkingfundmethod

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APR/MAY-'05/EE1451-Answer Key Straight Line Method A constant depreciation charge is made every year on the basis of total depreciation and the useful life of the property. If, Where, P = Initial cost of equipment; n = useful life of the equipment (yrs); S = Scrap or salvage value after the useful life Defects: Assumption of constant depreciation charge every year is not correct. It does not account for the interest which may be drawn during accumulation. P Depreciation Total depreciation

Value

Fig.2.9.Straightlinemethod Useful life

Diminishing value method Depreciation charge is made every year at a fixed rate on the diminished value of equipment. i.e. Depreciation is first applied to the initial cost of equipment and then to its diminished value. Depreciation rate per annum (x) is given as; Defects: Low depreciation charges are made in the late years when maintenance and repair charges are quite high. Depreciation charge is independent of the rate of interest which it may draw during accumulation. (If earned can be treated as interest)

P Depreciation

Value

Total depreciation

S
Fig.2.10. Diminishing value method Useful life Sinking fund method Fixed depreciation charge is made every year and interest compounded on it annually. The constant depreciation charge is such that total of annual installments plus

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APR/MAY-'05/EE1451-Answer Key the interest accumulations equal to the cost of replacement of equipment after its useful life. Let, r = is annual rate of interest in decimal value. q = is depreciation charge every year and interest compounded on it so that amount (P-S) is available after n years. Then, q can be obtained as; Value q gives uniform annual depreciation charge. P Depreciation Total depreciation

Value

S Useful life TwoMethods The Straight line method ------------------------------(10)

It first calculates the depreciable base (cost less salvage) before dividing it by number of years (life of machine) to arrive at annual rate of depreciation. The straight-line method is the most straightforward method of Asset Value Depreciation. But: Not all equipment deteriorates equally e.g. a car, over its useful life. Methods based on actual usage: total life are too cumbersome to be practicable For Example: Say a machine costs Rs. 10,000 and Rs. 1,000 (as additional setup/installation/maintenance expenses) = Rs 11,000 but we anticipate/guess its Kabari (Scrap Value) at Rs. 3,000 at the end of its useful life, of say, 10 yrs, we get: Cost of Machine + Installation + Directly Associated Costs = Total Cost Total Cost - Salvage Value (At end of 10 yr. Period) = Depreciable base 10,000 + 1,000 =11000 (Total cost) 11000 3,000 = 8,000 as the Depreciable Base Depreciable Base = Rs. 8,000, Spread out over 10 yrs = Rs. 8000/10(Yrs) = Rs 800/depreciation per year.

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This happens when we accurately assess asset life, but: If the machine outlasts its estimated life, we stop depreciation thereafter. If it fetches more salvage value, we book a Gain. If salvage value is 5000, against 3000 (Book Value at end of 10 yrs), we show a Gain of Rs. 2000. If the machine becomes obsolete after a mere 3 years, depreciation is 3(yrs) x 800 (p.a.) = 2400/-, less scrap value Rs. 500/-, we have a net loss of 11,000 2400 = Rs. 8600 (book value) 500 (salvage returns) = Rs 8,100 (loss). Cost = 11000 Annual Depreciation = 800 x 3= 2400 = 8600 (Book value) (Book value) 8600 500 (salvage value) = 8100 (Net loss) Proportionate Annual Depreciation of Rs. 800 (8000 10) is an example of the Straight Line Method of Depreciation.

The Written Down Value Method Written down value, applicable to machines that have high rates of depreciation in the initial year or two, and later taper it e.g. a car, is a usable method.

Under this method, depreciation is charged at a fixed rate every year, ON THE REDUCING BALANCE. A certain percentage is applied to the previous years book value, to arrive at the current years depreciation/ book value, WHICH SHOWS A DECLINING BALANCE, WEIGHTED FOR EARLIER YEARS, AND LOWER AND LOWER FOR LATER YEARS, as the machine grows older. Accelerates depreciation taken in early years. Reduces the amount taken in later years. Ignores salvage value; starts with depreciable base = asset cost.

Declining Balance Method It can be of many types: For example, 200 per cent declining balance, OR Double declining balance, is one popular method EXAMPLE OF DOUBLE DECLINING BALANCE METHOD: [The Double Declining Method takes an amount (usually double, i.e. 200% of the amount that we take in the Straight Line Method) and applies it to the book value of an asset each year]:

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APR/MAY-'05/EE1451-Answer Key Suppose the asset costing Rs.16,000 has AN ESTIMATED USEFUL LIFE OF 5 YEARS, the depreciation would be calculated as follows: YEAR 1 2 3 4 5 DEPRECIABLE BASE 16000-0 16000-0-6400 16000-6400-3840=5750 16000-6400-3840-2304
th

PERCENTAGE (FIXED) x 0.40 x 0.40 x 0.40 x 0.40

DEPRECIATION 6,400 3,840 2,304 1,382

Depreciation in the 5 year is only Rs. 74 to finally write off the entire machine depreciable base (Rs. 16000/-) less scrap value (Rs. 2000).

This example also shows accelerated, i.e. realistic, depreciation in early years of the machines life, when its productivity/ book value is higher, as opposed to its fall in value in later years, and commensurate retarded depreciation. Comparison of Methods of Depreciation: Many companies choose straight-line method for reporting depreciation to shareholders because net income is higher in early year. Because net income is lower in early years, some companies prefer the written down value method, especially for Income Tax purposes

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