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    Muruga Das
    The document outlines 4 depreciation formulas: 1) Straight Line Method calculates annual and total depreciation using replacement cost, salvage value, life, and age. 2) Constant Percentage Method calculates total depreciation using cost, depreciation rate, and age. 3) Sinking Fund Method calculates depreciation percentage and sinking fund using cost, sinking fund rate, and annuity amount. 4) Declining Balance Method calculates present depreciated value using an equation involving depreciation rate and previous year's value.

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    Untitled

    Uploaded by

    Muruga Das
    23 views1 page
    The document outlines 4 depreciation formulas: 1) Straight Line Method calculates annual and total depreciation using replacement cost, salvage value, life, and age. 2) Constant Percentage Method calculates total depreciation using cost, depreciation rate, and age. 3) Sinking Fund Method calculates depreciation percentage and sinking fund using cost, sinking fund rate, and annuity amount. 4) Declining Balance Method calculates present depreciated value using an equation involving depreciation rate and previous year's value.

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    The document outlines 4 depreciation formulas: 1) Straight Line Method calculates annual and total depreciation using replacement cost, salvage value, life, and age. 2) Constant Percentage Method calculates total depreciation using cost, depreciation rate, and age. 3) Sinking Fund Method calculates depreciation percentage and sinking fund using cost, sinking fund rate, and annuity amount. 4) Declining Balance Method calculates present depreciated value using an equation involving depreciation rate and previous year's value.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    23 views1 page

    Untitled

    Uploaded by

    Muruga Das
    The document outlines 4 depreciation formulas: 1) Straight Line Method calculates annual and total depreciation using replacement cost, salvage value, life, and age. 2) Constant Percentage Method calculates total depreciation using cost, depreciation rate, and age. 3) Sinking Fund Method calculates depreciation percentage and sinking fund using cost, sinking fund rate, and annuity amount. 4) Declining Balance Method calculates present depreciated value using an equation involving depreciation rate and previous year's value.

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    DEPRECIATION FORMULAS

    1 Straight Line Method

    Total Depreciation (Td) = Ad × m


    .
    Annual Depreciation (Ad) = =

    C = Replacement Cost

    Sv = Salvage Value

    n = Total life of Building

    m = Age of Building

    2 Constant Percentage Method

    Total Depreciation (Td) = 𝐶[1 − (1 − 𝑟𝑑) ]

    rd = Rate of Depreciation =

    3 Sinking Fund Method

    Depreciation percentage (d) = 100 × A × S

    Sinking Fund (S) =


    ( )

    ( )
    Amount per Annum (A) =

    Total Depreciation = d×C

    r = Sinking fund rate

    4 Declining Balance Method

    Solve Equ: ( ) = ( )
    Vm = Present Value

    (Depreciated Value)

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