What is Double Declining Balance Method? Detailed explanations are best with example questions, big

1. Double declining balance method.

Refers to the fact that fixed assets are not taken into account.

In the case of estimated residual value, multiply the opening book net value of fixed assets for each period by a fixed percentage.

A type of accelerated depreciation for which the amount of depreciation is calculated.

method. 2. The double declining balance method is a method that uses twice the depreciation rate of the average method of the fixed assets in the previous two years of the last two years of the service life of the fixed assets as a fixed depreciation rate multiplied by the decreasing net value of the opening of the fixed assets to obtain the depreciation amount that should be provided for each year; At the end of the useful life of fixed assets, the net book value of fixed assets at the beginning of the penultimate year is divided equally over the two years. Similar to the accelerated depreciation method, it allows you to reduce a larger amount in the first year.

The double declining balance method is a kind of accelerated depreciation method, which assumes that the service potential of fixed assets is consumed more in the early stage and less in the later stage.

1. The double declining balance method refers to a method of calculating the depreciation of fixed assets according to the original price of fixed assets at the beginning of each period minus the amount after accumulated depreciation and the double straight-line method depreciation rate without considering the estimated net residual value of fixed assets.

2. The net value of fixed assets shall be amortized on an average basis within two years before the expiration of its depreciation period, after deducting the estimated net residual value.

It is calculated as follows:

Annual depreciation rate = 2 Estimated depreciation period 100%.

Monthly depreciation rate = annual depreciation rate of 12

Monthly depreciation amount = net book value of fixed assets Monthly depreciation rate.

When using the double declining balance method, special attention should be paid to the fact that the balance of the net book value of the fixed assets after deducting the estimated net residual value should be amortized equally within two years before the expiration of the depreciation period of the fixed assets.

The double declining balance method is a method whereby twice the depreciation rate of the average method of the useful life of the fixed assets is multiplied by the fixed depreciation rate and the decreasing opening net value of the fixed assets in each year in each year before the last two years of the service life of the fixed assets. In the last two years of the useful life of fixed assets, the balance of the net book value of fixed assets at the beginning of the penultimate year after deducting the estimated net residual value is amortized equally over these two years.

Similar to the accelerated depreciation method, it allows you to reduce a larger amount in the first year. The double declining balance method is a type of accelerated depreciation method, which assumes that the service potential of fixed assets is consumed more in the early stage and less in the later stage.

The double declining balance method is a method of calculating the depreciation of fixed assets based on the net book balance of fixed assets (the book balance of fixed assets minus accumulated depreciation) and double the straight-line depreciation rate at the beginning of each period without considering the residual value of fixed assets, and its calculation formula is: annual depreciation rate = 2 estimated depreciation period 100% monthly depreciation rate = annual depreciation rate depreciation amount in December = net book value of fixed assets monthly depreciation rate.

When using the double declining balance method, special attention should be paid to the travel intention, and the depreciation of the fixed assets should be amortized evenly within two years before the expiration of the depreciation period of the fixed assets, and the balance of the net book value of the fixed assets after deducting the estimated net residual value.

The formula for calculating the double declining balance method:1) Annual depreciation rate = 2 The estimated depreciation period is 100%, and the annual depreciation amount = the annual depreciation rate of the opening net book value of fixed assets.

2) Monthly depreciation rate = annual depreciation rate 12

3) Monthly depreciation amount = net depreciation of fixed assets at the beginning of the year Annual depreciation rate 124) Net book value of fixed assets at the beginning of the period = original value of fixed assets - accumulated depreciation of old assets.

Double Declining Balance Laws Questions:Company A is a general VAT taxpayer, and the company purchased a piece of equipment to be installed on October 20, 2016, with a price of 8 million yuan and a deductible VAT input tax of 1.36 million yuan. For the purchase of the equipment, the insurance cost during transportation was 400,000 yuan.

In the process of equipment installation, 500,000 yuan of raw materials are used, and the relevant VAT input tax is 10,000 yuan; Pay the installation worker a salary of 100,000 yuan. The device reached its intended ready state on December 30, 2017. Company A uses the double declining balance method to provide depreciation for the equipment, with an estimated service life of 10 years and an estimated net residual value rate of 5%.

It is assumed that no other factors are taken into account. What is the depreciation amount of silver spike dust accrued for this equipment in 2018?

Answer and analysis: The recorded amount of the fixed asset = 800 + 40 + 50 + 10 = 900 (10,000 yuan), and the depreciation amount accrued by the fixed asset in 2018 = 900 2 10 = 180 (10,000 yuan).

Annual depreciation rate = 2 Estimated useful life (years) * 100%, annual depreciation amount = original price * annual depreciation rate.

It refers to a method of calculating the depreciation of fixed assets based on the amount of accumulated depreciation at the beginning of each period (i.e., net fixed assets) and double the straight-line depreciation rate without considering the estimated net residual value of fixed assets.

Since the double declining balance method does not take into account the salvage income of fixed assets, care must be taken when using this method that the book depreciation of a fixed asset cannot be reduced below its projected salvage income. According to the provisions of the current system, the net value of fixed assets shall be amortized evenly within two years before the expiration of the depreciation period of the fixed assets.

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The double declining balance method is a method of calculating the depreciation of fixed assets based on the net value of the vertical draft of the fixed asset account at the beginning of each period and the depreciation amount of the double straight-line method without considering the residual value of fixed assets. The calculation formula is as follows: annual depreciation rate 2 estimated depreciation period 100 months depreciation rate annual depreciation rate December depreciation amount net book value of fixed assets Monthly depreciation rate This method does not take into account the residual value income of fixed assets, so it cannot reduce the book depreciation value of fixed assets below its expected residual value income, that is, fixed assets that are depreciated by the double declining balance method should be amortized equally in the last two years of the expiration of the depreciation life of their fixed assets.

For example, if the original price of a fixed asset of an enterprise is 10 000 yuan, the expected service life is 5 years, and the estimated net residual value is 200 yuan, the depreciation is calculated according to the double declining balance method, and the annual depreciation amount is: the annual depreciation rate of the double balance 2 5 100 40 40 The depreciation amount that should be provided in the first year 10 000 40 4000 (yuan) The depreciation amount that should be provided in the second year (10 000 4 000) 40 2 400 (yuan) The depreciation amount that should be provided in the third year (6 000 2 400) 40 1 440 (yuan) From the fourth year onwards, depreciation will be calculated on the average life method (straight-line method).

Clause. 4. Annual depreciation for the remaining five years (10 000 4 000 2 400 1 400 200) 2 980 (yuan), 9,