Learning the Basic Function usage

Cost of Asset : 200,000

Life of asset : 5
Salvage Value
Months in the :First Year : 20,000
5

Fixed Asset Account SLN Method

Year Opening Balance Amount of Closing
Depreciation Balance

1 200,000 15,000 185,000

2 185,000 Rs.36,000.00 149,000
3 149,000 Rs.36,000.00 113,000
4 113,000 Rs.36,000.00 77,000
5 77,000 Rs.36,000.00 41,000
It is advisable to use the roun
6 41,000 Rs.21,000.00 20,000 function to round off your
depreciation amounts or the
decimal digits should be

Fixed Asset Account DB Method eliminated at the end.

Year Opening Balance Amount of Closing

Depreciation Balance

1 200,000 Rs.30,750.00 169,250

2 169,250 Rs.62,453.25 106,797
3 106,797 Rs.39,408.00 67,389
4 67,389 Rs.24,866.45 42,522
5 42,522 Rs.15,690.73 26,832
6 26,832 Rs.5,775.50 21,056
 Amount of
Depreciation
rounded off
15,000
Rs.36,000.00
Rs.36,000.00
Rs.36,000.00
Rs.36,000.00
It is advisable to use the round
function toRs.36,000.00
round off your
depreciation amounts or the
decimal digits should be
eliminated at the end.

Amount of
Depreciation
rounded off
Rs.30,750.00
Rs.62,453.00
Rs.39,408.00
Rs.24,866.00
Rs.15,691.00
Rs.5,775.00
 Prepare a depreciation schedule for the followind data:

Cost of Asset : 200,000

Life of asset : 5 Life+1= 6
Salvage Value : 20,000 DB
Months : 5 SLN
Depreciation Method: DB

Fixed Asset Account Working Note

Year Opening Amount of Closing Depreciation
Balance Depreciation Balance Amount
Calculation
1 200,000 30,750 169,250 30750
2 169,250 62,453
3 - DEP 39,408
4 - DB 24,866
5 - SLN 15,691
6 - 5,775
Total 30,750
It is advisable to use the round
function to round off your
depreciation amounts or the
decimal digits should be
eliminated at the end.
=IF(COUNT(A9)=1,IF($B$5="DB",DB($B$1,$B$3,$B$2,A9,$B$4),SLN($B$1,$B$3,$B$2)*(B4)/12),"")

=IF(COUNT(A13)=1,IF($B$8="DB",DB($B$4,$B$6,$B$5,A13,$B$7),IF(AND(A13=$E$5,$B$7<12),SLN(
$B$4,$B$6,$B$5)*(12-$B$7)/12,SLN($B$4,$B$6,$B$5)))," ")
 Prepare a depreciation schedule for the
following data:

DEPRICIATION SCHEDULE

COST OF FIXED ASSET 800,000

SALVAGE VALUE 50,000 It is advisable to use the
LIFE OF FIXED ASSET 5 round function to round
off your depreciation
MONTHS IN THE Ist YEAR 6 amounts at the end.

PERIOD DB METHOD SLN METHOD

1 170,400
2 268,210
3 153,952
4 88,369
5 50,724
6 14,558
Total 746,212
How To Interpret the DB/SLN Function Used here:
We used the function to get a total at the end of the
75,000 column
If the year 1 is equal to "life +1", calculate total of depreciation at the end of 2nd year,
150,000 otherwise calculate DB or sln in respective column.
150,000 If the year 2 is equal to "life +1", calculate total at the end of 3nd year, otherwise calculate
DB or sln in respective column and so on....
150,000 This condition will only be true in the 4th year where your period will be equal to "Life +1"
150,000 so it gave me total at the end of the column.
75,000
750,000

We have Used a Formula in Period and Alternatively you can use the sum
Depreciation Function to give an function for summing up the
automatic total at the end. amounts of depreciation.
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Function Used here: 9
total at the end of the
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eciation at the end of 2nd year,
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nd of 3nd year, otherwise calculate 12
our period will be equal to "Life +1", 13
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