A fixed asset has an acquisition cost of LCY 100,000. The Declining-Balance % field is 25. The Calculate Depreciation batch job is run biannually. The FA ledger entries look like this
|
Date |
FA Posting Type |
Days |
Amount |
Book Value |
|
01/01/00 |
Acquisition Costs |
|
100,000.00 |
100,000.00 |
|
06/30/00 |
Depreciation |
180 |
-12,500.00 |
87,500.00 |
|
12/31/00 |
Depreciation |
180 |
-12,500.00 |
75,000.00 |
|
06/30/01 |
Depreciation |
180 |
-9,375.00 |
65,625.00 |
|
12/31/01 |
Depreciation |
180 |
-9,375.00 |
56,250.00 |
|
06/30/02 |
Depreciation |
180 |
-7,031.25 |
49,218.75 |
|
12/31/02 |
Depreciation |
180 |
-7,031.25 |
42,187.50 |
|
06/30/03 |
Depreciation |
180 |
-5,273.44 |
36,914.06 |
|
12/31/03 |
Depreciation |
180 |
-5,273.44 |
31,640.62 |
|
06/30/04 |
Depreciation |
180 |
-3,955.08 |
27,685.54 |
|
12/31/04 |
Depreciation |
180 |
-3,955.08 |
23,730.46 |
Calculation Method:
1st Year: 25% of 100,000 = 25,000 = 12,500 + 12,500
2nd Year: 25% of 75,000 = 18,750 = 9,375 + 9,375
3rd Year: 25% of 56,250 = 14,062.50 = 7,031.25 + 7,031.25
The calculation continues until the book value equals the final rounding amount or the salvage value that you entered.