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Accumulated vs depraciation

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Yasaswi Gomes new

Finance

3352 Points Posted on 26 November 2023

Depreciation is for current year (cost-salvage)/years of usage

Accumulated depreciation= SLM×no of years

I want a schedule clearly expounding yearly accumulated depreciation (credit) and not normal depreciation cause everyone knows SLM is the same amount for all years.

Txs

Replies (2)

Quick Summary

This discussion clarifies the distinction between depreciation, which is the expense recognised each year, and accumulated depreciation, which is the cumulative credit balance of depreciation charged against an asset over time. A detailed schedule is provided to illustrate the year-by-year progression of accumulated depreciation, alongside its impact on net book value and tax calculations under both Straight-Line Method (SLM) and Written Down Value (WDV) methods.

Yasaswi Gomes new

Finance

3352 Points Posted on 30 November 2023

tadaaah!

Cost		10000		LIFE		5 YRS
SLM		20%		SCRAP		0
WDV		25%		CURRENT DEP		2000
	a	b	c	d	e	f	g	h	i	j	k	l	m
YEARS	SLM DEP	NBV	PBT	(c-a)	TAX @ 30%	ACC DEP	NBV	WDV	NBV	PBT	(j-h)	TAX @ 30%	DTA/(DTL)
1	2000	8000	5000	3000	900	2000	8000	2500	7500	5000	2500	750	150
2	2000	6000	5000	3000	900	4000	6000	1875	5625	5000	3125	938	-38
3	2000	4000	5000	3000	900	6000	4000	1406	4219	5000	3594	1078	-178
4	2000	2000	5000	3000	900	8000	2000	1055	3164	5000	3945	1184	-284
5	2000	0	5000	3000	900	10000	0	791	2373	5000	4209	1263	-363

Aashok Kumar Sharma

Finance/Compliance Consultant

78010 Points Posted on 04 November 2026

Depreciation is the annual expense of 2,000, whereas Accumulated Depreciation is the growing credit balance that builds up year-by-year (2,000 in Year 1, 4,000 in Year 2, up to 10,000 by Year 5) until the asset is fully depreciated.