Write steps to compute Depreciation using straight line method or approach or Fixed Instalment method or Original Cost Method in Excel-2007
The following worksheet shows cost, rate of depreciation and life of a machine. Write steps to compute Depreciation using straight line approach in column E.
To compute depreciation using straight line method,
Enter years as 1 to 7 in cells D2 TO D8,
Enter years as 1 to 7 in cells D2 TO D8,
Enter the formula
=$B$1*$B$2 in cell E2 and then press enter key,
Using the fill handle of cell E2, copy the formula to cells E3 :E8 by dragging the fill handle up to cell E8.
To compute depreciated amount.
Enter the formula
=$B$1-SUM ($E$2:E2) in cell F2 and then press enter key,
Using the fill handle of cell F2, copy the formula to cells F3 :F8 by dragging the fill handle up to cell F8 .
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