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SUM OF THE YEAR'S DIGITS Method of Depreciation
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In this video you'll learn how to use the Sum of the Year's Digits Depreciation Method in Accounting. This an accelerated variable depreciation technique. Others depreciation methods include...
You'll find out what depreciation means and how it applies to Non-Current Assets like a Solar Panel. Then we'll cover a full worked example where you'll learn how to apply the Sum of the Year's Digits Method in three simple steps. This episode of Accounting Stuff is part of a mini-series on Depreciation in Accounting. You can find the link to the whole playlist here ⬇️
⏱️TIMESTAMPS
00:00 - Intro
00:10 - What is Depreciation?
00:21 - What is the Sum of the Year's Digits Method?
00:46 - Example
01:22 - Step 1: Write Down What You Know
01:49 - Step 2: Build a Depreciation Schedule
02:24 - Step 3: Calculate the Depreciation Rate, Depreciation Expense, Accumulated Depreciation & Book Values
02:53 - How to Calculate Sum of the Year's Digits Depreciation Rate
04:48 - How to Calculate Sum of the Year's Digits Depreciation Expense
07:48 - Sum of the Year's Digits Depreciation Graph
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#accounting #accountingbasics #accountingstuff
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