Depreciation | How to Calculate Straight Line & Reducing Balance Depreciation

This video will help you understand how to calculate depreciation. The video explains how to calculate both the straight line method and reducing balance method of calculating depreciation.

Each method has clear examples and if you want to apply your new found knowledge of depreciation then download the activity worksheet here: https://www.tes.com/teaching-resource...

Depreciation is how much the value of an asset falls over a period of time. In order to record this expense to a business on an income statement you can use either one of these two key methods.

Firstly is the STRAIGHT LINE METHOD and secondly the REDUCING BALANCE Method. Each method enables the business to record the value lost of an asset in the expenses section of an income statement. This is an important expense to consider for a business as it can be costly if it is not monitored.

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