2 Replies Latest reply on Jan 9, 2010 12:36 PM by comment_1

# how to calculate declining-Balance Method depreciation

### Title

how to calculate declining-Balance Method depreciation

### Post

Hi

I need solution to calculate depreciation according to declining balance method and fulfil following requirements.

1: First year calculate depreciation form purcahasing date to closing date of finical year but if purchasing date greate then 15 of that month than ignore that month and start calculating depreciation form next month.

2: The book value of the asset at the end of the closing year will automatically set as opening year book value of the asset  and next depreciation will calculate on this value according to define  predefine percentag.

Thanks.

• ###### 1. Re: how to calculate declining-Balance Method depreciation
the depreciation charge for the asset can be calculated using the following formula:

Dpn = (C- R)/ N

where:

Dpn = Annual straight-line depreciation charge

C = Cost of the asset
R = Residual value of the asset
N = Useful economic life of the asset (years)

• ###### 2. Re: how to calculate declining-Balance Method depreciation
That would be straight-line depreciation, not declining balance method.