What is the method of depreciation?
1, the average life method: also known as the straight-line method, is based on the use of fixed assets in the life of the average depreciation method. According to this method of calculation of the annual depreciation amount is the same, therefore, in the use of assets in each year the same situation, the straight-line method is more appropriate.
2, workload method: this depreciation method is based on the total workload (total hours of work, total work shift, total mileage, etc.) to depreciate.
3, double-declining balance method: is a method of calculating depreciation of fixed assets based on the original cost of fixed assets at the beginning of each period minus accumulated depreciation and double the straight-line method of depreciation rate without taking into account the estimated net salvage value of fixed assets.
Accounting entries for depreciation
Accrued depreciation is the bookkeeping of an enterprise to pre-accrue certain depreciation expenses that have been incurred but not actually paid. When depreciation is charged, it is debited to the corresponding cost or expense account and credited to the accumulated depreciation account. When a fixed asset is depreciated, the following entries are made:
Borrow: Administrative Expenses - Depreciation Expense, etc.
Credit: Accumulated Depreciation
Accumulated depreciation is the amount of fixed assets that should be amortized over the period of time that the asset benefits from the use of the asset. Accumulated depreciation account belongs to the asset class of the allowance adjustment account, which is just the opposite of the structure of the general asset account, accumulated depreciation is credited to register an increase, debited to register a decrease, the balance on the credit side indicates the total amount of accumulated depreciation.
Fixed asset depreciation is a systematic apportionment of the amount of depreciation that should be accrued over the useful life of a fixed asset in accordance with a determined method. The amount of accrued depreciation refers to the original cost of fixed assets that should be depreciated, less their estimated net value, and fixed assets for which provision for impairment has been made should also be deducted from the cumulative amount of the provision for impairment of fixed assets that has been made.