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Reverse Depreciation formula

Others 2499 views 1 replies
I have last 2 years balance sheet.
I want to calculate depreciation as per companies act. But I don't know purchasing or capitalized date of some assets. How to calculate depreciation??? If someone have reverse Calculation Formula so that I calculate exact date... Please help sir / mam 🙏🙏🙏🙏🙏
Replies (1)

What is the accumulated depreciation till date? That much amount can be reversed I believe. Ex. Asset value= 10,000₹, useful life= 5 years

           Depreciation     Accumulated Depreciation 

Year 1      2000.             2000

Year 2      2,000             4000

Year 3      2,000             6000

Year 4      2,000             8000

Year 5      2,000            10000

Supposing if you have data for three and four years, check out what is the useful life that is left. It’s obviously one year. Then the accumulated depreciation is 8,000, so, 6,000-8,000=2,000₹. Past years= 2*2000=4,000. This is only a gist because scrap value and reducing balance method schedules are different and must be prepared. I hope you are using SLM method. 


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