Depreciation Schedule
this section aims
to:
1. relate the
total and average years in depreciation in the preparation of depreciation
schedule; and
2. construct the
depreciation schedule.
Depreciation is
the lost in value of physical assets through its use. The yearly
deposits into the depreciation fund are called depreciation charges.
The depreciation
fund is the portions of a
given amount at the end of its useful life or the difference between the
original cost of the asset and the sum in the depreciation fund is called the book value of the asset. At the end of the year.
Here's one way of creating a Depreciation Schedule
Making a Depreciation Schedule in Excel
Sophisticated accounting software is
not necessary to create a depreciation schedule. Learn to create this
accounting form using Microsoft Excel.
Create a Depreciation Schedule in Excel from
Scratch
This tutorial uses
straight line depreciation for simplicity. However, modifying the straight line
formula with the formula that you want to use, such as Double Declining
Balance, is all that is necessary to change the depreciation method.
1. Open Microsoft Excel
and rename the first tab to Depreciation Schedule. If several schedules are
preferred for comparison sake, name the tab to something like "SL
Depreciation Schedule." Other tabs can be created for Double Declining
Balance, etc.
2. Place a title, such
as "<Company Name> Straight Line Depreciation Schedule" in row
one.
3. Name the columns as
so:
·
Column A Row Two = Asset Name
·
Column B Row Two = Asset Class
·
Column C Row Two = Asset Description
·
Column D Row Two = Physical Location
·
Column E Row Two = Asset Number
·
Column F Row Two = Serial Number
·
Column G Row Two = Acquisition Date
·
Column H Row Two = Acquisition Cost
·
Column I Row Two = Estimated Useful Life (In Years)
·
Column J Row Two = Estimated Salvage Value
·
Column K Row Two = Straight Line Depreciation
Value
Format the Depreciation Schedule
The
bones of the schedule are complete. Now it's time to format the document.
1.
Highlight the title and
all the columns through column K in row one. Click on "Merge &
Center."
2.
Click on the Quick
Formatting Bar and choose the "Heading 1" option.
3.
Highlight the cells in
row two from Column A to Column K. Right click to bring up the short menu.
Click on the "Format Cells" option. A dialog box will open. Click on
the "Alignment" tab and choose the checkbox for "wrap
text." Choose the "center" option from the main formatting menu
to center the text in these cells.
4.
Choose to bold the
titles, change the color of the text, and alternate the colors of the rows
however you please. One quick way to format a table in Excel is to use the
"Format as Table" option in the formatting menu. Make sure to select
the "My table has headers" option.
5.
Start filling in the
data from Column A to Column J.
6.
Enter the straight line
formula in Column K. For example, the formula for row 3 would be: =(H3-J3)/I3.
Tips:
1.
Cells can be formatted
further as currency, text, date, etc. by right clicking the cell to display the
quick menu and selecting "Format Cells."
2.
When highlighting cells
across columns be sure to not click the row header (ie the row number 2) for
example. This will highlight all the columns across the entire spreadsheet and
could cause printing problems if a format such as "borders" were to
be applied.
3.
If the "Format as
Table" option is used and the check box "My table has headers"
is appropriately checked, then drop down arrows appear in the cells for row 2.
The arrows allow for sorting the rows.
That's
all there is to it. The depreciation schedule is now ready to use as a tool for
bookkeeping or tax purposes.
Create a Depreciation Schedule in Excel Using
a Template
Learning
to use a tool from scratch is important for independence and skill growth.
However, there is an easier method for creating a depreciation schedule in Microsoft Excel using
templates.
1.
Open Microsoft Excel and
click the new button.
2.
In the search bar,
located at the top of the dialog box, click on schedules and search for
"Depreciation." Notice that there are several templates to choose
from.
3.
Select the desired
template.
4.
Start entering data.
That's
all there is to it. Be sure to save the new document to your computer. When
working with large lists, it is a good idea to save the work intermittently.
I hope my post helped you guys. I also hope that you learned a lot about Depreciation Schedule.
Checked by: Prof. Crisencio M. Paner
