All right, so time for another very important deposition function in Excel.
So basically this is called the rebuttal declining method.
And I will explain this definition later.
First of all, you and I will be working it with you because it is a little complex.
Just.
So, first of all, let me tell you one thing.
This method is very much similar to the decline method, just with some other options, some other,
I would say, versatile options.
This one is more versatile than the double decline method.
So you will notice that I have the same data here that I have used earlier in the line matter.
The cost is a million dollars and the settlement is two hundred thousand dollars.
The deposition method is double decline balance.
I will just change it to variable declining method.
Now just change your variable.
In fact, it will be very much the same variable decline.
And you can see this 40 percent here.
That is the percentage that we have just worked out in the last example.
But if I can just recall it for you, this percentage is coming from the straight line method so you
can see the life of the other last five years, which means one hundred percent divided by five, 20
percent as the deposition per annum.
And when we say double decline, you have to double this 20 percent to make it 40 percent.
Right.
And here we have calculated the deposition for each year, one to five using our manual workings index.
So first of all, first of all, for the purposes of recall, just to calculate the DB again, double
decline method, I will just do it quickly.
DB equals.
Cost and then salvage value and then life, that is five years and then period, that is for this particular
self is one I will ignore the factor that is by default, too.
And I will press enter.
And you can see that we have the same definition that is above the law as in the store 10.
And if I can just lock the cells, you're not the ones that are needed to be locked and then copy and
paste to all of those cells.
You will notice that you have the same deposition that is also there in the room number 10.
Now, I have to do this work, this time with this Whedbee formula.
For that, I will just scroll down and I would go here and I would see.
Equals Whedbee now, the first argument that the family was expecting from me is cost, I will go and
select the.
The second one is salvage the third one as life that is here.
And now, the next argument, the next argument you will see is the start period.
And with the start period, this is basically the difference between Debbie and really being this formula
in DTV.
You need to be formula.
You were given the exact period that one, two, three, four.
But in reality, you can give the start and earnings period.
What that means is you can calculate the deposition for a range of period.
I mean, from year one to your three year one to five or different period in this formula, that feature
was not available and did not start period has to with this one, you can see that start period is basically
this current period.
But now the problem is this formula is expecting you expecting a range from you.
And if we have to see the deposition, if you have to say that deposition is starting from here, we
have to give Document Asiel because, you know, in finance and accounting, you're zero means today
and year one means after 12 months.
So I have to tell Exel that if you are talking about Grynch, the deposition starts today.
So I will be doing minus one in this formula here.
Minus one, I'm sorry, minus and.
Minus one.
So basically, I'm telling Axl that takebe it, but Bienstock one so that it becomes a zero and then
again I will be going to be it again to give it the ending there.
So if you look at this, B minus one means year zero to year one and then Fekter, you can give a factor
of two, but that is given by default.
So I would be ignoring this.
And Nonsuch, ignore the switch for now.
I would be explaining that later in this lecture.
So I will close the bracket for now.
Plus entra.
And you can see that you have the same deputization calculation that you have above in the row 10 and
12.
Right.
So let us lock the values that we need to.
And I will love this one.
And this one.
This one as well as this one.
So I will lock all of these values and I will copy and paste all five years.
I'm sorry I had locked one more value that was not needed.
Basically, I should be making that years as a relative reference.
Yes.
So I will just copy and paste it now and you will notice that you have that same deputization here in
the number twenty three now with Fredi formula that is also available in a number 10 and all that,
you have only a vote, that manual working already.
Now you must be you must be thinking that what is so special about this formula.
Now let me show you some additional features that are available in this formula and that makes this
formula really special.
First of all, let us see if you want to start with your zero.
That is B at minus one.
That's all right.
But you want to end not with your one, rather with your two.
And if you look at your Excel, your two is mentioned in rule C, in column C and see it.
So rather than be it, I'm giving it.
See it now.
See it.
That will mean from year one two year to year zero to year two.
So I will press enter and you will notice that your answer is six forty thousand.
No, what this 640 really means is if you go here and you notice your one and two, you will notice
that this 640 is basically the definition of your one and your two combined together.
And you have basically given the variable from the range of zero to two.
So definitely it will bring the deposition of your one and two.
Not if I just generate a bit more.
And other than C I d, I will make it here like year three as well.
So it will bring the formula, will bring the deposition for year one, two and three.
All of them.
I will press enter and you will notice that your answer is seventy four thousand and seven eighty four
is basically the sum of all of these three values here, one, two and three.
So if I can just show you here some of.
You're one, two and three press control, Andrew, and that is four.
So this way you can work out a deposition from multiple events, multiple months and multiple beatings
as well, and multiple days as well.
And by the way, if you're working on months and days, please make sure that your life is also here
in days and months.
The all the variables of the time, like good should be the same, should be in the same unit.
I mean, if you're working and days, all the values should be in this.
If you're working in months, all the value should be in months or quarters or years as you like.
Right.
I will just go back and I will make it easier.
One for now.
That was basically be it.
Right.
OK, so we are back to our original workings.
Not have to show some additional work as well.
First of all, I will copy and paste this formula here and I will just correct the reference.
So basically, this is not benign.
This is be it, be it.
And here as well.
Be it.
And now we're showing some additional things as well.
So first of all, if I just delete this and open the formula again, you will see that Exel is asking
me for the factor.
So if I give it to, there will be no change.
I will press, enter now, control, enter.
And you can see that we have the same value again.
So to basically brings no difference.
And one last thing that I need to show you is the switch.
So I just press comma and you can see that Exel has given me two options, which is basically the option
that do not switch to straight line and the other is false, which is switch to straight line.
And what does that mean?
Exelis giving me that would appear as well to switch to a straight line even when the deposition is
greater than that declining balance.
So.
What does that mean?
Let me show you the Fallsburg switch to straight line when deputization is greater than their declining
balance calculation.
So what does that mean?
That if you're deputization is lower than the declining balance, you should be moving to straight and
mantid calculation?
It will not be making any difference here.
If I press false or two any of them, I will just, you know, apply the suture and you will see that
there is no difference.
It will bring no difference.
I'm bringing it to false, which is basically switched to straight line.
I will just complete the formula and I will copy and paste it to all the cells and you will notice that
it is not bringing any difference here.
So just explain it a bit at this to explain the formula further.
What I'm going to do is that I'm going to change the rate here and rather than taking two taking point
eight here.
So I'm just trying to explain that how this whole thing's a false thing or true will actually impact
how this will actually impact.
I'm giving the factor of two, three pointers, giving the vector of pointed, which means that you
will be taking rather than double decline.
You are actually coming lower than one that disappointed.
So I'll just press enter for now and you can see that my answer is one sixty thousand.
And if I copy and paste this formula to all the cells, you can see that my answer is one sixty thousand
in all of them.
What does that mean actually.
Let me explain to you.
So if I rather then pointed to if I take one, my answer will be two hundred thousand.
Right.
If I take even lower than that at this point, it my answer will be one sixty thousand, which is the
same as this one that is.
In my case I have taken it.
And here if I take one you will see that my answer is.
One hundred and sixty thousand, so if you are taking point eight, which is even lower, you unsalable
more than one hundred and sixty thousand, but what Excel will do is that see that if your answer is
less than one hundred and sixty thousand, Exel will automatically apply 160 and 160 because 160 is
this third line matter is the straight line deputization.
If I can just quickly do it for you, you can see the straight line as cost minus deputization divided
by useful life.
That is, in my case, five years.
I will just about five and you can see.
So you have to apply the brackets and why I'm even doing you like that.
I should have used Excel formula, so I will apply SLN and I will say cost and I will say salvage and
I will say life.
And Exel will tell me that my answer to this depreciation is a hundred and sixty thousand, and he has
applied one hundred sixty thousand and all of them.
So if I can go back and make it point it, you can see that Excel will automatically give me one hundred
and sixty thousand rather than the original value.
And if I know Command Excel that please don't make peace, don't switch, not make it true, do not
switch to the straight line method.
I will just give it true this time and I will press control enter and you can see that what is going
to happen.
Excel has not shifted my values to straight line.
Excel has given the original values of the of the point eight factor.
And now if I sum all of them, it will not basically make the complete depreciable amount.
If I can add all of them.
You can see that the total deputization in all the five years is 531 and rather it should have been
eight hundred thousand.
Right.
So for that reason, what we have to do is that we give the switch to this formula that if it is going
to happen, please apply the false and copy and paste.
All this is a bit complicated but very useful.
So I really hope that it is making some sense to you now.
And if it does not, please watch this video again and let me let me know in the questions and in the
massive section, if there are some problems, I can I can make some other.
We should explain that as well.
And now we can look at the definition, this method definition as well.
And that is this is double declining balance.
It is the and a straight line combined.
So there is a straight line method that has been combined in this double declining method and how it
has been combined.
First of all, the rate was coming from a straight line.
And secondly, the VB formula gives you an option that if the overall deputization amount is not getting
matched, please switch this to a straight line.
I hope it is making some sense now.