SLN Function (Functions in Excel)
Cost | £12,000 | |
Salvage | £2,000 | |
Life | 4 | |
Straight Line Depreciation | £2,500 | =SLN(F3,F4,F5) |
Purchase Value Of A New Car | £20,000 | |
Second Hand Value | £8,000 | |
Number Of Years Ownership | 6 | |
Annual Straight Line Depreciation | £2,000 | =SLN(F9,F10,F11) |
What Does It Do ? |
This function calculates the Straight Line Depreciation of an item. |
(Also known as Fixed Instalment method). |
The Straight Line Depreciation is how much the value of an item reduced during a specific |
period of time. The result is a uniform depreciation value. |
An example would be if you bought a new car for £20,000, then kept it for 6 years. |
At the end of your ownership you sell the car for £8,000. |
The difference between the original and the trade in price is £20,000 - £8,000 which is £12,000. |
Because you owned the car for 6 years, the SLN is calculated as £12,000 / 6 which is £2,000. |
Syntax |
=SLN(OriginalCost,SellingPrice,LengthOfOwnership) |
The LengthOfOwnership can be any time period, days, months or years. |
However, the SLN which is calculated will, be for that time, specifying 2 years ownership |
as 24 months will give an SLN per month. |
Formatting |
No special formatting is needed. |
0 comments:
Post a Comment