Depreciation Help?

AmyM

Can anyone please help with helpful techniques/ revision for depreciation?

Pian32

I'd just go through the book and write it out to be honest:

SL:
Take the original cost and divide by the number of years (or times by the given %age) . - Stays the same every year.

RB:
Book cost
(Original Cost - Accumulated depreciation) * %age

Check the rules for the year. Do they charge in the opening or ending year or is it pro rata.

Once the amount is decided you DEBIT the depreciation expense and CREDIT the appropiate FA account(s)

If you're dealing with disposals:

Debit Credit
Original Cost (A) Accumulated Depreciation (B)
Proceeds from Sale (C)
Gain (D) Loss (D)

You'll only have either a gain or loss to balance the asset.