Depreciation Schedule

Every company has its own policy on how to record its fixed assets face value during the books of accounts closing. Most of the accountants maintain the assets schedule in an excel worksheet showing the allocation of depreciation value for its fixed asset items. But first the following criteria, has to be considered in which the particular fixed assets is being depreciated based on the useful life of the asset.  Policy has to be defined as per the useful life of the particular assets.

Particular asset could be estimated as in workable condition for the next 5 years (i.e., Vehicle, Equipment etc.,) The estimated useful life of the assets can also be re-assessed whether the useful life of it can be extended for another year or so on.

Below is the basic way of calculating a particular asset and depreciation schedule preparation:

Ex:

Assuming company A purchased a Motor Vehicle on 15/1/18 at a value of 100,000.00 and has an estimated useful life for 5 years. The best method of calculating is accelerated depreciation method or evenly over the useful life of the asset.

 

 

Calculation Formula
Jan (31 days)      1,698.63 (100000÷5yrs÷365Days)x31days
Feb(28 days)      1,534.25 (100000÷5yrs÷365Days)x28days
Mar (31 days)      1,643.84 (100000÷5yrs÷365Days)x31days
Apr (30 days)      1,698.63 (100000÷5yrs÷365Days)x30days
May (31 days)      1,698.63 (100000÷5yrs÷365Days)x31days
June (30 days)      1,643.84 (100000÷5yrs÷365Days)x31days
July (31 days)      1,698.63 (100000÷5yrs÷365Days)x31days
Aug (31 days)      1,698.63 (100000÷5yrs÷365Days)x31days
Sept (30 days)      1,643.84 (100000÷5yrs÷365Days)x31days
Oct (31 days)      1,698.63 (100000÷5yrs÷365Days)x31days
Nov (30 days)      1,643.84 (100000÷5yrs÷365Days)x31days
Dec (31 days)      1,698.63 (100000÷5yrs÷365Days)x31days
Accumulated Depreciation as on

31-Dec-2018

   20,000.00
Acquisition Cost 100,000.00
Book Value as on December 31, 2018 80,000.00
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