Assets
Depreciation schedule builder
Build straight-line, reducing-balance and units-of-production schedules side by side.
Straight-line
Equal charge each year: (cost − residual) ÷ life.
| Year | Charge | Carrying amount |
|---|---|---|
| 1 | 8,400.00 | 39,600.00 |
| 2 | 8,400.00 | 31,200.00 |
| 3 | 8,400.00 | 22,800.00 |
| 4 | 8,400.00 | 14,400.00 |
| 5 | 8,400.00 | 6,000.00 |
| Total | 42,000.00 |
Reducing balance
35% of the opening carrying amount; the final year writes down to residual value exactly.
| Year | Charge | Carrying amount |
|---|---|---|
| 1 | 16,800.00 | 31,200.00 |
| 2 | 10,920.00 | 20,280.00 |
| 3 | 7,098.00 | 13,182.00 |
| 4 | 4,613.70 | 8,568.30 |
| 5 | 2,568.30 | 6,000.00 |
| Total | 42,000.00 |
Units of production
Charge in proportion to output: (cost − residual) × units this year ÷ total units.
| Year | Charge | Carrying amount |
|---|---|---|
| 1 | 10,080.00 | 37,920.00 |
| 2 | 12,600.00 | 25,320.00 |
| 3 | 8,400.00 | 16,920.00 |
| 4 | 6,720.00 | 10,200.00 |
| 5 | 4,200.00 | 6,000.00 |
| Total | 42,000.00 |
| Date | Account | Debit | Credit |
|---|---|---|---|
| 6500Depreciation expense | 8,400.00 | ||
| 1510Accumulated depreciation — equipment | 8,400.00 | ||
| Year 1 depreciation — straight-line (carrying amount after: 39,600.00) | |||
| 6500Depreciation expense | 16,800.00 | ||
| 1510Accumulated depreciation — equipment | 16,800.00 | ||
| Year 1 depreciation — reducing balance (carrying amount after: 31,200.00) | |||
| 6500Depreciation expense | 10,080.00 | ||
| 1510Accumulated depreciation — equipment | 10,080.00 | ||
| Year 1 depreciation — units of production (carrying amount after: 37,920.00) | |||
One method is chosen per class of asset to reflect how its benefits are consumed (IAS 16), and applied consistently. Every method charges the same total — cost less residual value — only the timing differs.
Learn it properly
- Recognising property, plant and equipment · Accounting for Assets
- Depreciation methods · Accounting for Assets
- Logistics: fleet costs and fuel · Industry Accounting Cases
- Month-end close practical exam · Accounting Career and Interview Preparation
More assets simulators
All companies and figures in the simulators are fictional.