Answers for "account depreciation"

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account depreciation

DEPERIATION COST(DC)=OC-SV
1 STRAIGHT LINE METHOD (SLM)
****************************************************************************
IT PROVIDES UNIFORM OR EQUAL DE/Y										   *
		DEP EXP(DE)=DC/LIFE												   *
****************************************************************************
        ----------------------------------------------------------------------
        |YEAR  |	DEPEXP | ACCDEP						|BV					  |
        |------|-----------|----------------------------|---------------------|
        |1     |	DE	   | DE							|OC-this year ACCDEP  |
        |------|-----------|----------------------------|---------------------|
        |2	   |	DE	   |this year DE + last year AD |OC-this year ACCDEP  |
        |------|-----------|----------------------------|---------------------|
        |3	   |	DE/*   |DC							|SV                   |
        ----------------------------------------------------------------------
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2 UNITS OF PRODUCTION METHOD (UPM)
****************************************************************************
     DEPN CPMPUTATION BASED ON USAGE RATE								    *
    The dep exp may vary depend on the asset usase in each year             *
    ALSO CALLED ACTIVITY BESED NETHOD									    *
    DEP RATE(DR)=DC/CAPACITY(/hr)											    *
        DE/Y=DR*ANNUAL USAGE OF THE YEAR(given)								    *
****************************************************************************
	
        
        ----------------------------------------------------------------------
       | YEAR  | DR  |USEL|   DE	| ACCDEP					  |BV		  |				
       | ------|-----|----|---------|-----------------------------|-----------|
       | 1     |DR   | UL |DR*ZSYUL | DE						  |OC-t AD    |
       | ------|-----|----|---------|-----------------------------|-----------|
       | 2	  |	DR   | UL |DR*ZSYUL | this year DE + last year AD |OC-t AD    |
       | ------|-----|----|---------|------------------|----------|-----------|
       | 3	  |	DR/* | UL |DR*ZSYUL |  DC						  |SV         |            
        ----------------------------------------------------------------------
        
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3 DOUBLE DECLING BALANCE METHOD(DDBM)
****************************************************************************
IT BASED ON PAST OF TIME         										   *
		DR=2*(100/LIFE)%		     									   *
****************************************************************************
	
        --------------------------------------------------------------------------
       | YEAR  | BCB         |DR  |   DE	| ACCDEP				    |BVE	  |	  
       | ------|-------------|----|---------|---------------------------|---------|
       | 1     |OC           | DR |	OC*DR	|DE				            |OC-AD    |
       | ------|-------------|----|---------|---------------------------|---------|
       | 2	   |LAST YEAR BVE| DR | BVB*DR  |this year DE + last year AD|OC-AD    |
       | ------|-------------|----|---------|---------------------------|---------|
       | 3	   |LAST YEAR BVE| DR | BVB*DR  | DC						|SV       |           
        --------------------------------------------------------------------------   
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4 SUM OF THE YEAR DIGITS METHOD(SYDM)
****************************************************************************
it is beased on passage time       										   *
		DR=2*(100/LIFE)%		     									   *
****************************************************************************
	N=n(n+1)/2 when n is life
   *fraction Y1=life/N*
    		 Y2=(life-1)/N
             Y3=(life-2)/N
             Yk=(life-(k-1))/N
             for ex if the life is 5 
             N=5(5+1)/2=15
             y1=5/15
             y2=4/15
             y3=3/15
             y4=2/15
             y5=1/15
             
         DE=DC*YEARLY FRACTION
         
        ----------------------------------------------------------------------
       | YEAR  | FRACTION | DE	    | ACCDEP					  |BV		  |				
       | ------|----------|---------|-----------------------------|-----------|
       | 1     |Y1        |Y1*DC    | DE						  |OC-AD      |
       | ------|----------|---------|-----------------------------|-----------|
       | 2	   |Y2        |Y2*DC    | this year DE + last year AD |OC-AD      |
       | ------|----------|---------|-----------------------------|-----------|
       | 3	   |Y3        |Y3*DC    | DC						  |SV         |            
        ----------------------------------------------------------------------
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Posted by: Guest on July-20-2021

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