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 ^ ?
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.
Devide by 10 yrs discouted rate of return Value
| 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
Dear Mr. Inderjeet,
Your formulae still needs recitification,
Rate = {1 minus "number of year's" root of "Scrape value" divide by "Cost"}*100
plz send me that attached file in another format. it's xls file. i am not able to open this.
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
Hi
You can calculate depreciation rate using log table.
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