This preview shows pages 1–3. Sign up to view the full content.
Depreciation using Fixed Declining Balance Method
– DB
The depreciation charge or expense of an asset for any one specific period of time using
the complexdeclining balance method can be calculated using Excel’s DB function.
See the table below for a detailed list of the exercises and problems in the text that
can be solved using this function.
Syntax
=DB(cost,salvage,life,period,month)
Cost – initial cost of the asset
Salvage – value of the asset at the end of depreciation
Life – number of periods over which the asset is being depreciated
Period – is the period and must use the same units as Life
Month – number of months in the first year. Assumed 12 if left blank
General Example
The following general example shows how the DB function can be used. Notice that the
DB function appears in the formula bar.
1
This preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentUsing the DB Function in a Spreadsheet
To calculate the depreciation charge for one period using the decliningbalance method,
create a worksheet by following Steps 1 to 7. Or, to use the DB function right away,
select the DB worksheet in the Excel Functions Templates workbook. All fields have
been formatted for you (currency, percentage, number of decimals displayed).
Step 1
: Enter the title
DB Function
in cell A1. You will replace
DB Function
with your
project title when you use the spreadsheet for a particular question or situation.
Step 2
This is the end of the preview. Sign up
to
access the rest of the document.
 Fall '05
 TonyCirusolo
 Math

Click to edit the document details