How to calculate accumulated depreciation?

There are four cumulative depreciation algorithms: average life method, workload method, accelerated depreciation method and sum of years method.

1, average life method

Annual depreciation rate =( 1- estimated net salvage value) divided by estimated service life multiplied by 100%. The average life method, also known as the straight-line method, is a method to evenly allocate the depreciation of fixed assets to each period, and the depreciation accrued in each period is the same.

2. Workload method

Depreciation of each workload = the original price of fixed assets multiplied by (1- net residual value) divided by the estimated total workload. The workload method is a method to extract depreciation according to the actual workload. When calculating, first calculate the depreciation amount of unit workload, and then calculate the monthly depreciation amount of fixed assets according to the depreciation amount of unit workload.

3. Accelerated depreciation method

Annual depreciation rate =2 divided by depreciation years multiplied by 100%. Accelerated depreciation method refers to the double declining balance method, which is a method to calculate the depreciation of fixed assets according to the opening book balance and double straight-line depreciation rate of fixed assets, regardless of the residual value of fixed assets.

4. Annual sum method

Annual depreciation rate = sum of useful life divided by estimated useful life. The total life method, also known as the total life method, is to calculate the annual depreciation by multiplying the net value of the original value of fixed assets MINUS the net residual value by a decreasing score year by year.

accumulated depreciation

Cumulative depreciation refers to the depreciation of fixed assets in the process of production and operation, which leads to the decrease of their value and only a certain residual value, and the difference between their original value and residual value is shared within their service life. Determining the depreciation range of fixed assets is the premise of depreciation accrual.