Finance in Excel 5 - Calculate Declining Balance Method of Depreciation in Excel

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Learn how to calculate an asset's depreciation amount in Excel using the Declining Balance Method. This tutorial shows you how to use the Declining Balance Method of depreciation in order to calculate the depreciation amount of an asset over its useful lifetime. This is the second tutorial on depreciation. Also, you will learn the main shortcoming of this method, which is that if the salvage value of the asset is $0 at the end of its life, the function will depreciate the entire cost of the asset in year 1 or in year 1 and 2 depending on the arguments used. This tutorial in Excel uses the DB() function.
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Have a great day!

[@mholtz1547]

But the ending value after year 5 doesn't give you the $25,000?

[@GaryHutsonVBA]

You could have used RIGHT('Year value', 1) to strip the value from the end of the the yearly breakdowns. Good video.

[@lizyolanfred7227]

pretty clear!!!

[@shakiriqbal1482]

excellent way

[@marx931]

Thanks a lot!

[@tariqttnwjtariq]

beautiful !!

[@iamMaazHussain]

What is the depreciation rate that is being applied here?

[@SadashivBorgaonkar]

In your video you have mentioned that the excel spreadsheets are downloadable. But I see that the page of the same doesnot exist. Pl let me know how to do it. Appreciate your videos. Thanks

[@exalism]

Super :)

[@francescotagliavento8081]

Hi could I use this file excel to calculate that : a company acquired a machine on 01.01.2013 at cost of 130,000 and spent 2,000 on its installations and 3,000 on trasport. Life of the machienry is 10 years. The company uses the declining balance method of depreciation for machinery at 30% a year. the books of accounts are closed on the 31st december every year. what will be the depreciation charge for the year 2015(year 3)? a)19,845 b)28,350 c)13,500 d)88,695 e) none of above answers is correct

[@theTruthFace1]

=DB(cost, salvge, life, period, [month})

[@justifyu2182]

It's wrong brother it's 12 month there not 1 🙄🙄

[@basilogolla3678]

no, 1 is 12months