# Depreciation Example

### This Course has been revised!

For a more enjoyable learning experience, we recommend that you study the mobile-friendly republished version of this course.

Take me to revised course.
• Study Notes

### Diploma in Business Management & Entrepreneurship - Depreciation Example

• Topic Reviews
Turkey 09 April 2017
BabaJide Martins F.

Depreciation as defined. It means decrease in value due to wear and tear, decay, decline in price.

Equatorial Guinea 09 April 2017
Alice B.

Please I need the meaning of straight line as used in accounting.

South Africa 09 April 2017
Morne V.

IT true depreciation should be charge against those two vehicles

Nigeria 09 April 2017
Sunday O.

Depreciation bring back return

Uganda 09 April 2017
Odongo M.

Accounting -> Depreciation Example Example At 1 January vehicles have a balance of \$90 000. On 1 April a further vehicle is bought for \$10 000. The vehicles are to be depreciated at 15 percent per annum, straight line. The accounting period ends on 30 June. Calculation: \$90 000 x 15/100 x 6/12 = \$ 6750 \$10 000 x 15/100 x 3/12 = \$375 Total depreciation = \$7125

Nepal 08 April 2017
Manish K.

WE can find out calculations of two vehicles for 6 months and 3 months respectively; depreciation of both vehicles was 7125 dollars which should be shown as selling expenses in P/L account and net asset after deducting depreciation should be shown in balance sheet.

Kenya 08 April 2017
MARY RITA J.

explain how 6 and 3 come along

Ghana 08 April 2017
Emmanuel A.

yeah

United States of America 08 April 2017
Penelope M.

you have to spend money to make money, will always be my moto!1

Morocco 08 April 2017

What is an example of depreciation?

• Text Version

### Diploma in Business Management & Entrepreneurship - Depreciation Example

Accounting - Depreciation Example

Example

At 1 January vehicles have a balance of \$90 000. On 1 April a further
vehicle is bought for \$10 000. The vehicles are to be depreciated at 15
percent per annum, straight line. The accounting period ends on 30 June.

Calculation:

\$90 000 x 15/100 x 6/12 = \$ 6750

\$10 000 x 15/100 x 3/12 = \$375

Total depreciation = \$7125

Previous | Next