Today we want to talk about depreciation
What is depreciation?
Every fixed asset loses its initial efficiency after a period of time, the part that is lost due to operation or production or anything is called depreciation.
Among the assets, they calculate depreciation every year, which means that some of the assets have been converted into depreciation
There are several methods for calculating depreciation
Well, what is that??
1_ Straight line method
2_ The total number of years
3- Descending and double descending
Well first:
Straight line method:
In this method, depreciation is the same every year
Its formula:
The cost of the asset – the scrap value divided by the useful life
Example:
Upholstery with finished parts 5000,000, scrap value 1000,000 and useful life of 4 years
Calculations:
Obtaining depreciation using the straight line method
We accommodate well:
Asset price – scrapping divided by useful life
Priced at 5000000
Abortion 1000000
Useful life 4 years
Solution:
first year
5000,000_1000,000=4000,000
4000,000 ÷ 4=1000,000
To record the depreciation of the debtor’s depreciation expense and the debtor’s accumulated depreciation
Debtor’s furniture depreciation cost is 1000,000
Accumulated depreciation of creditor’s furniture 1000,000
The second year is the same as the first
the second:
total years
In this method, first we get the total years and then we use the formula
Its formula:
Property price minus depreciation value × the year in question divided by the total number of years
Example:
Furniture with a price of 5000,000, salvage value of 1000,000, useful life of 4 years
Solution:
First, we calculate the total number of years
4+3+2+1=10
The denominator is 10
Well done:
For example, the first year:
5000,000_1000,000=
400,000 x 10/4 = 1600,000
Second year:
500000_100000×3/10=1200,000
and 00000
The third method:
Descending:
First of all, in this method, the value will be discarded and neglected, which means it will not be used
Its formula:
Cost price × depreciation rate
Example:
The price of furniture is 5000,000, scrap value is 1000,000, useful life is 4 years
Solution:
First we get the rate and bads
It can be useful for a lifetime
1/4=25%
Solution:
First year:
500,000 x 25% = 1250,000
Depreciation cost of 1250,000
Accumulated depreciation 1250000
Second year:
500,000-1250,000 x 25% = 9375000
and 000
Say double descending method
If this website says that the rate that we get is 2 times tons, it’s like a decline, we won’t care.
good example
The price of the furniture is 5000,000, the scrap value is 1000,000, the useful life is 4 years
Rate:
1/4×2=50%
Solution:
first year
500000 x 40% = 200000
Second year:
500000-200000 × 40% = 1200,000
Well, part of its depreciation
Kari from Moztaz accounting channel group
@hesabdarimomtaz
This post is written by Huryyy00