Question

write the formula of depreciation in accounts.

give answer​

Answer 1

Explanation:

Use the following steps to calculate monthly straight-line depreciation: Subtract the asset's salvage value from its cost to determine the amount that can be depreciated. Divide this amount by the number of years in the asset's useful lifespan. Divide by 12 to tell you the monthly depreciation for the asset.

Answer 2

ANSWER :

❖ The formula of depreciation on an asset under Straight Line Method in accounts is :

$\bigstar \: \: \boxed{\sf{ \large{Depreciation = \frac{ \: Cost \: \: of \: \: the \: \: asset \: - \: Scrap \: \: Value \: }{Expected \: \: Life \: \: of \: \: the \: \: Asset}}}}$

• Under Straight Line Method, the amount of depreciation for a particular asset remains same from year to year.

• The amount of depreciation is calculated by deducting the scrap value from thr original cost of the asset and then dividing the remaining balance by the number of years of estimated life.

NOTE :

❖ There are many methods of charging depreciation on an asset such as :-

• ➭Straight Line Method

• ➭Reducing Balance Method

• ➭Annuity Method

• ➭Insurance Policy Method

• ➭Depreciation Fund Method

• ➭Revaluation Method

• ➭Depletion Method

• ➭Machine Hour Rate Method

Among all these method, Straight Line Method and Reducing Balance Method are the most commonly used methods of depreciation.

• Under Straight Line method, the amount of depreciation is calculated by deducting the scrap value from thr original cost of the asset and then dividing the remaining balance by the number of years of estimated life.

• Under Reducing Balance Method, the amount of depreciation is calculated on the balance/value of the asset as appearing at the beginning of each year.