Excel Training

How to create a depreciation schedule in Excel

Most businesses use assets like furniture, computers, cars, machines, etc for providing services or products to their customers. Due to wear and tear these assets depreciate. The income tax departments or authorities in different countries have their own method of fixing depreciation amounts for every financial year for the various categories of assets. They may allow 25% per year or 20% per year or 40% per year on cars, motorbikes and computers respectively. Also the depreciation expense allowed may depend on the date of purchase during the financial year in question. For the financial year beginning january 1 and ending December 31 they may allow full depreciation amount only if the asset has been purchased in the first 6 months i. e. by the 30th June and only 50% of the full depreciation if they purchase the assets after end June.
Once the depletion on each asset has been calculated, you can sum the data and finally deduct thie amount from your 'net income before depreciation' to get your final net income on which you have to pay a certain tax amount. The depreciated values now become the opening values for the next financial year.
The training video provides the details and demonstration of the calculations.


Practical example of creating a depreciation schedule in Excel