In asset accounting we are run depreciation in 10% now we are in 6th period . But now our client says that the depreciation percentage is 12% but we have wrongly calculated on 10%. So what are the process we have calculated actual percentage.
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Answer / Rohit Kumar Rajak
To calculate the actual depreciation percentage, you need to adjust your calculations for the correct rate (12%) and apply it to all prior periods. Here's a simple example in Excel:
1. Create a table with the asset cost, useful life (in periods), and the number of periods elapsed so far.
2. Calculate the remaining useful life by subtracting the elapsed periods from the total useful life.
3. Multiply the remaining useful life by the new depreciation rate (12%) to find the actual depreciation for each period.
4. Sum up the actual depreciation for all prior periods to get the total actual depreciation.
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