Khushi (CA & CS Final) (1367 Points)
07 November 2008How to calculate Deppreciation rate using reducing balance method through normal calculator?
Formula is : [1- scrap value/ cost of assets^ life years]*100
for example: scrap value of machine is 200000rs. cost of assets is 20,00,000 & life time is 10 years. Rate of depp?
i want to know that how to calculate this ^ ?
Juzer Sadikot
(CA - innovative solutions for Imports and Exports)
(1309 Points)
Replied 07 November 2008
Dear Ganga,
The formula for Rate of Depriciation on WDV basis will be
Rate = {1 minus nth root of (S/C)}*100
for your reference I have prepared the Depriciation rate calculation (please find attached to this reply.
CA. Dashrath Maheshwari
(TaXpert)
(15103 Points)
Replied 07 November 2008
Devide by 10 yrs discouted rate of return Value
INDERJEET
(CWA STUDENT & SERVICE)
(177 Points)
Replied 07 November 2008
| Originally posted by :Ganga | ||
| " | How to calculate Deppreciation rate using reducing balance method through normal calculator? Formula is : [1- scrap value/ cost of assets^ life years]*100 for example: scrap value of machine is 200000rs. cost of assets is 20,00,000 & life time is 10 years. Rate of depp? i want to know that how to calculate this ^ ? |
" |
HI,
YES IT IS RIGHT = 1-ROOT EXPECTED LIFE OF ASSETS S/C*100
Juzer Sadikot
(CA - innovative solutions for Imports and Exports)
(1309 Points)
Replied 07 November 2008
Dear Mr. Inderjeet,
Your formulae still needs recitification,
Rate = {1 minus "number of year's" root of "Scrape value" divide by "Cost"}*100
Khushi
(CA & CS Final)
(1367 Points)
Replied 08 November 2008
plz send me that attached file in another format. it's xls file. i am not able to open this.
Juzer Sadikot
(CA - innovative solutions for Imports and Exports)
(1309 Points)
Replied 08 November 2008
Dear Ganga,
You need to have MS excel installed in your PC to look at this file.
I understand there are no other like software/application which can satisfy our purpose.
for your ready reference I am attaching same file again.
Regards
supriya
(student)
(159 Points)
Replied 05 December 2008
Hi
You can calculate depreciation rate using log table.
CAclubindia
