Accrual of depreciation of fixed assets Example solving!! Thanks

1. Accrued according to the straight-line method, depreciation is withdrawn every year:

2. According to the double declining balance method, depreciation is withdrawn every year

First year: 940 000 * 2 5 = 376 000 Second year: 376 000 * (1-2 5) = 225 600 Third year:

225 600 * (1-2 5) = 135 360 At this time, the book value = 940 000-376 000-225 600-135 360 = 203 040

Fourth year: 203 040 2=101 520Fifth year: 203 040 2=101 520Accounting treatment: debit: xx expenses (depending on the department using machinery and equipment) credit: accumulated depreciation.

1.Life-of-life method Annual depreciation 940000*95% 5=1786002Sum of years 1st year 940000*95%*5 (5*6) 2=2nd year 940000*95%*4 (5+6) 2=and so on 3rd year 178600

Year 4, year 5.

3.Double Balance Method Year 1 940000*2 5=376000 Year 2 (940000-376000)*2 5=225600 Year 3 (940000-376000-225600)*2 5=135360

The average provision for the last two years is 156640 2=78320

Hello, dear. The methods of depreciation of fixed assets are: 1. The average life method, also known as the straight-line method, is the simplest and commonly used method.

This method is calculated by subtracting the estimated net residual value of the fixed asset from the original price of the fixed asset by dividing the expected useful life to obtain the annual depreciation expense. 2. Workload method, also known as variable cost method. It is a method of calculating depreciation according to the actual workload.

It is based on the theory that the decrease in the value of an asset is a function of the use of the asset. According to the business activities of the enterprise or the use of equipment, the folding bucket is used to calculate the old bucket. 3. The double declining balance method generally amortizes the net value of the fixed assets after deducting the estimated net residual value within two years before the expiration of the useful life of the fixed assets.

4. The sum of years method refers to the balance of the original price of fixed assets minus the estimated net residual value, multiplied by a decreasing fraction to calculate the annual depreciation amount.

Methods of Accrual of Depreciation of Fixed Assets The methods of accrual of depreciation of fixed assets mainly include the average life method, the workload method, the double declining balance method and the sum of years method. Since the principle of the average years method and the workload method are relatively simple, we will only explain the two methods here: the double declining balance method and the sum of years method.

1.The double declining balance method is an accelerated depreciation method that calculates the depreciation amount for each year by multiplying 2 times the straight-line depreciation rate (excluding net residual value) by the net book value of fixed assets at the beginning of the year. In order to ensure that the depreciation of fixed assets is neither more depreciation nor more depreciation is provided in the specified depreciation period, so that the total amount of depreciation accrued on fixed assets is equal to the accumulated accrued depreciation amount of fixed assets, and does not violate the requirement that the depreciation amount of each year under accelerated depreciation decreases year by year (at least the depreciation amount of the later years is not greater than the depreciation amount of the previous years), according to the provisions of the current accounting system, the balance of the net value of the fixed assets after deducting the net residual value shall be amortized evenly within two years before the expiration of the depreciation period of the fixed assets.

2.The sum of years method is an accelerated depreciation method that calculates the depreciation amount of the current year by dividing the remaining useful life of fixed assets at the beginning of a certain year by dividing the sum of the year-by-year figures of the useful life as the depreciation rate of the current year, and multiplying it by the total accrued depreciation of the fixed assets.

3.The difference between the double declining balance method and the sum of years method.

1) Under the double declining balance method, it is necessary to convert the method during the depreciation period, that is, to use the straight-line method from the penultimate year onwards; However, the use of the law of the sum of years does not require a method conversion.

2) Under the double declining balance method, the depreciation base is the net value of fixed assets in each year when depreciation is not required to be calculated using the straight-line method, i.e., the original value of fixed assets minus the accumulated depreciation accrued, without deducting the estimated net residual value. When the sum of years method is adopted, the depreciation base is the total depreciation accrued of fixed assets, that is, the original value of fixed assets minus the estimated net residual value, and the estimated net residual value has been deducted.

3) Under the double declining balance method, the depreciation rate is fixed in each year when there is no need to switch to the straight-line method for depreciation, and the depreciation base multiplied by the depreciation rate decreases year by year. When the sum of years method is used, the depreciation rate decreases year by year, while the depreciation base multiplied by the depreciation rate is fixed.

The depreciation methods of fixed assets include the average method of life leveling, workload method, double declining balance method and sum of years method.

Enterprises should reasonably choose the depreciation method of fixed assets according to the expected consumption mode of economic benefits related to fixed assets.

Once the depreciation method of fixed assets is determined, it cannot be changed at will.

1. Life average method (straight-line method) Annual depreciation amount = (original value of fixed assets - estimated net residual ridge value) Estimated service life = original value of fixed assets (1 - estimated net residual value rate) Estimated service life.

Monthly depreciation = annual depreciation 12.

2. Workload method Depreciation per unit of work = original value of fixed assets (1 - net residual value rate) Estimated total workload.

Monthly depreciation amount = monthly workload of fixed assets Depreciation amount per unit of workload.

3. Double declining balance method Annual depreciation rate = 2 Estimated service life 100% Annual depreciation amount of fixed assets = net value of fixed assets at the beginning of the period Annual depreciation rate = (original value of fixed assets - accumulated depreciation) Annual depreciation rate.

Monthly depreciation of fixed assets = annual depreciation of fixed assets 12.

Note] It is required to change to the average of years in the penultimate year. When using the double declining balance method, the estimated net residual value does not need to be taken into account except for the last two years.

Depreciation amount for each of the last two years = (original value of fixed assets - estimated net residual value - accumulated depreciation in previous years) 2.

4. Sum of years method Annual depreciation rate = still useful life The sum of the number of years of the expected service life.

Annual depreciation amount = (original value of fixed assets - estimated net residual value) Annual depreciation rate.

Monthly depreciation rate = annual depreciation rate of 12.

We all know that fixed assets and intangible assets are used to produce Youran products, and they also have costs. Its value, which is its cost, needs to be included in the cost of the product. Amortization is required, which requires depreciation.

1. How to depreciate fixed assetsThe depreciation of fixed assets purchased in the current month is not depreciated, and depreciation begins in the next month after being recorded. Depreciation of fixed assets refers to the depreciation of fixed assets extracted according to the approved depreciation rate of fixed assets in order to make up for the loss of fixed assets in a certain period, or the depreciation of fixed assets calculated virtually according to the depreciation rate stipulated in the unified national accounts. It reflects the transfer value of fixed assets in current production.

The depreciation of fixed assets of various enterprises and enterprises and public institutions under enterprise management refers to the depreciation expenses that are actually accrued and included in the costs; The depreciation of fixed assets of ** organs, institutions under non-enterprise management and residential housing that does not provide for depreciation is a fictitious depreciation calculated according to the depreciation rate and the original value of fixed assets. There are many ways for enterprises to accrue depreciation of fixed assets, which can basically be divided into two categories, namely the straight-line method (including the average life method and the workload method) and the accelerated depreciation method (including the sum of years method and the double declining balance method), and the enterprise should choose different methods according to the expected realization of the economic benefits contained in the fixed assets. The amount of depreciation accrued varies greatly depending on the depreciation method of enterprises.

The enterprise shall accrue the depreciation of fixed assets on a monthly basis, and the depreciation of fixed assets increased in the current month shall not be depreciated in the current month, and the depreciation shall be accrued from the next month; Depreciation of fixed assets reduced in the current month will be continued in the current month, and depreciation will be stopped from the next month. After the depreciation is fully applied, no depreciation will be withdrawn regardless of whether it can be continued to be used; Depreciation will not be made for fixed assets that are scrapped in advance. 2. Attention to the depreciation of fixed assets 1, pay attention to the scope of depreciation, according to the current accounting standards for business enterprises, except for the following circumstances, enterprises should depreciate all fixed assets:

a. Fixed assets that have been fully depreciated and continue to be used; b.In accordance with the regulations, the land that is valued as a fixed asset is recorded in the account; c. Fixed assets in the process of modernization. Depreciation is also provided for unused machinery and equipment, instrumentation, means of transportation, tools and appliances, and seasonal disuse.

2. Pay attention to the re-provision of fixed assets, which is to consider the impairment provision of fixed assets. 3. Pay attention to the determination of the annual depreciation amount when the depreciation period crosses years. Depreciation of fixed assets refers to the depreciation of fixed assets extracted according to the approved depreciation rate of fixed assets in order to make up for the loss of fixed assets in a certain period, or the depreciation of fixed assets calculated virtually according to the depreciation rate stipulated in the unified national accounts.

Accounting Standards for Business Enterprises No. 4 - Fixed Assets Article 17 An enterprise shall reasonably choose the method of depreciation of fixed assets according to the expected realization of the economic benefits related to fixed assets. Alternative depreciation methods include the average life method, the work method, the double declining balance method, and the sum of years method. Once the depreciation method of fixed assets is determined, it cannot be changed at will.