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HOSTING A TOTAL OF 318 FORMULAS WITH CALCULATORS

Declining Balance Method of depreciation

declining Balance Method charges depreciation at a higher rate in the earlier years of an asset.this is also known as Reducing Balance Depreciation Method.

Declining balance method of depreciation is a technique of accelerated depreciation in which the amount of depreciation that is charged to an asset declines over time. In other words, more depreciation is charged during the beginning of the life time and less is charged during the end.

[b-v]*r 100

Here,v=residual value,b=net book value r=rate.

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