OK, so welcome back.
Time for depreciation using some of your digits method, so this method will basically calculate the
deputization basically on the basis of your digits of the year one, two, three, four and five.
So what does that mean?
As let's say in this example, we have a set which cost us a million dollars and salvage value is two
hundred thousand dollars and life is five years.
So what I will do is that, first of all, I will write all the years, year one, two, three, four
and five.
And then basically that in this method, the total depreciable amount of eight hundred thousand, that
is a million minus this value million minus selvidge value will be divided over the sum of all of these
years digits.
And if you can add all of them, you will see that this is basically 15.
If I can just show you here that will come up to be 15 paratus.
So we will divide the cell, the appreciable amount over 15, and then we will charge this depreciable
amount to the year on the basis of the digits.
So rather than charging the deputization on the basis of one, we will go to reverse order.
That is five, four, three and then two and then one.
So basically we will be charging out of 15, five times deputization recharge to the first year and
then four times will be going to the second and two times will be to the third and in the reverse order
basically.
So let's do that.
The first thing that we will do is that we will take equals cost minus industrial value.
That is basically the way to with the deputyship element.
That will be Álex.
So I'll be making sure that these are in brackets.
And then once we have added the brackets, it will go here and said divide by basically 15 so I can
write 15 here, but I already have told you that it is against the best practice, basically, to use
the values like the to use the hard code numbers that is basically hardcoded means that you are inputting
any numbers straight away.
Like if I put 15 here, so I will not do that.
I will basically apply the formula and I will be showing the context to the exact formula.
So I will say divide it by sum of all of these years.
One to five and I will close the record for this formula and then then I have to multiply this whole
value, this whole formula with this factor that is five.
So I will just make sure that I have additional brackets here.
Otherwise, you know, next to may make it all wrong.
So I will just make sure that all of the areas in one bracket, all of the argument is in one record
and then we multiply.
That could be 15.
So I will just press enter now.
And you can see that Axel has given me the deputy depreciable amount deputization for the year for the
year one, actually.
All right.
So that just deputization charge for year one.
And now I have to copy paste this formula to all five years.
But first, make sure that we have logged what we need to do.
So we need to log before and.
Of course, we do need to and then we need to lock the range that is being to afraid.
Of course we need to.
And then we do not need to lock the B10 because then we will go to the next year.
We will expect it to pick for your three here to here and one here.
OK, so I have logged the correct things and I will just copy and paste and you can see that Axel has
applied to deputization to all the different years.
Another thing that we must notice again, and that is if you can do some all of these different five
years, you will see that the total sum should be eight hundred thousand, because that is what we need
to deputyship the total value so that it is OK.
So we have actually calculated the deposition using some of your method.
That is completely alright.
But, uh, you know, we don't need to work that hard to calculate the deposition when especially when
we have Excel.
So rather we will use this Excel formula of Suweidi as well.
This is basically some of your digits matter.
And for that we need cost selvidge life and people, to be honest, this period.
So which Bédard you you're working on like beta one, beta one, etc..
So I will go here and I will say, please apply this formula that Suadi and Dabke and first document
is that I will pick the cost.
So here it is.
I have my cost here.
I will just zoom out a bit to make sure that you can see the whole thing here.
Right.
Uh, like that.
Yes.
OK, so just give me.
Yes.
Right.
So SFD and then cost that is here and then the salvage value that is here and then the life that is
here and then the period now period is basically this is the first year I will be giving it the first
beta.
So when you were working manually, you have taken five instead of euro instead of one in your one.
Right.
But when you are using this Microsoft Excel formula, don't worry about that extra automatically.
Take your offer.
And that is the beauty of Excel formulas.
All right.
So we have given the cost, salvage value life and then the period that we are working for and includes
the record.
And here we go.
You have the same answer so that you have here after a long calculation and here you have the same answer,
this straightforward formula.
And now I would be copy paste into the five years.
But before that, let's make sure we have logged the cells where we need to.
So first one, of course, then salvage, of course, life, of course.
And but we are not going to log.
Right.
OK, so copy and paste to all five years and you can see that you have the same answers here that you
have earlier calculated here.
So deputization charge using some of this method with a straight, simple formula.
I hope you are impressed with Excel.