Depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 May 2015 Formula to calculate WDV rate:
formula
We will like to discuss how to calculate such square root:
First divide 5,000/1,00,000 : 0.05
Press under root button 12 times
Subtract 1
Divide by factor, here 10
Add 1
Press (* =) 12 times
After these, amount 0.7412
Now, 1 – 0.7412 = .2588 i.e. 25.88 %
I DON'T UNDERSTAND THE PRESS(*=) CAN ANYBODY SUGGEST WHAT IS THIS TERM USE AND DETAIL THEM PLEASE I AM CONFUSED HOW WE DO THIS CALCULATION ON CALCULATOR

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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13 May 2015 You can try calculating yourself by using below formula:

r = 1-(s/c)^(1/n)

Where,

r = rate of depreciation
s = scrap value
c = cost of assets
n = no. of year of life of assets

For example take Plant & Machinery:

r=1-(5/100)^(1/15)
=18.10%

Just put the above stated formula in excel.

Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2015 OK THIS FORMULA HELP ME A LOT THANKS SIR

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