06 Apr Depreciation Schedule
Posted at 22:28h in 0 Comments
A depreciation schedule helps a business to keep track of the decline in the value of its long-term assets. All assets do not depreciate at the same rate. The accounting department in a firm uses a depreciation schedule to maintain a record of the reduction in the value of its assets over the years. The schedule also contains a host of other information.
What is a Depreciation Schedule?
It is necessary for every business to maintain several types of details about each of its long-term assets. These assets are also known as fixed assets. The particulars that need to be recorded are:
What does depreciation schedule mean?
- The original cost and description of the asset.
- The date on which it was purchased.
- The length of time for which the company plans to use the asset.
- The estimated salvage or end value.
Moller Corporation is a company that manufactures computer peripherals. Its depreciation schedule looks like this:
Example of a depreciation schedule
|Current Year: 2017|
|Cost of Fixed Assets||$51,000|
|Accumulated depreciation as of December 2017||$33,333.33|
|Fixed Assets, net of depreciation, as of December 2017||$17,666.67|
|Type of Asset||Date of acquisition||Cost $||Life of asset in years||Estimated end value $||Current year depreciation $||Cumulative depreciation $||Value net of depreciation $|
A depreciation schedule provides details about the original cost of the long-term assets of a company and their reduction in value over the years. Yearly depreciation is calculated after assuming a certain useful life for each asset as well as an estimated salvage value.