Using the following information, create a Double declining, depreciation schedule. Van cost:34,440 Residual value: 1,722 Useful Life: 3 Years Example: Straight-line depreciation Schedule. Years Value at the beginning of the year Depreciation End of year Value 1 34,440 10,906 23,535 2 23,535 10,906 12,628 3 12,628 10,906 1,722
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Using the following information, create a Double declining,
Van cost:34,440
Residual value: 1,722
Useful Life: 3 Years
Example: Straight-line depreciation Schedule.
|
Years |
Value at the beginning of the year |
Depreciation |
End of year Value |
|
1 |
34,440 |
10,906 |
23,535 |
|
2 |
23,535 |
10,906 |
12,628 |
|
3 |
12,628 |
10,906 |
1,722 |
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