Depreciation can be calculated using any of the following methods, however the most popular methods remain (a) Straight Line Method and (b) Written Down Value Method.
Contents
● Straight Line Method
● Written Down Value Method
● Annuity Method
● Insurance Policy Method
● Machine Hour Rate Method
● Depletion Method
● Revaluation Method
● Depreciation Fund Method
Format
| DEPRECIATION CHART | |||||||
| Desc. | Opening Value | Addition during the year | Sale | Balance | Rate of Depreciation | Value of Depreciation | Closing Value |
| 1 | 2 | 3 | 4 | 5(2+3-4) | 6 | 7 | 8(5-7) |
Format of ledger accounts
| ASSET ACCOUNT | |||||||
| Date | Particulars | L.F. | Amt | Date | Particulars | L.F. | Amt |
| 25-06-13 | To Bank | xxx | 31-03-2014 | By Depreciation | xx | ||
| By Balance c/d | xx | ||||||
| Total | xxx | Total | xxx | ||||
| 01-04-2014 | To Balance | xx | By Depreciation | xx |