MS Excel 2010, 2007, 2003 provides SYD Financial Function to calculate DEPRECIATION under Diminishing Balance Method or Written Down Value Method.

Function :- SYD (cost, salvage, life, per)

Cost :- asset or investment initial cost

Salvage :- value of asset or investment after useful life

Life :- Expected useful life of asset

Per :- for first year 1, second year 2 as so

Path

2007 :- Formula -- Financial -- SYD

2003:- Insert Menu -- Function -- Financial -- SYD -- ok

Question:-

Cost of purchase asset = $5,00,000.00 (in D4 cell)

Useful life = 15 Years (in D5 cell)

Salvage Value after 15 years= $1000.00 (in D6 cell)

Per = for 1st year = 1, 2nd year = 2...........

1 col - Year

put 1 in A8 cell & 2 in A9 cell. Then Drag it for 15 years i.e. A23 cell

2 col - Amotized Cost: Formula

B9 cell =D4

B10 cell =D9 and Drag formula of B10 cell for 15 years i.e. B23 cell

4 col - Slavage

D9 cell =B9-C9 and Drag it for 15 years i.e. D23 cell

3 col - Depreciation

C9 cell (dep 1st years)

Formula Menu (Excel 2007) -- Financial -- select SYD --

View Picture

Cost :- asset or investment initial cost

= select cost cell & press F4 for $$ sign

Salvage :- value of asset or investment after useful life

= select salvage cell & press F4 for $$ sign

Life :- Expected useful life of asset

= select life cell & press F4 for $$ sign

Per :- put 1 because 1st year Depreciation is calculated

Then press Ok

Resulted formula =SYD($D$4,$D$6,$D$5,1)

Drag C9 cell formula to C29 cell & change per value i.e. 1st year 1, 2nd year 2

i.e.

1st year formula =SYD($D$4,$D$6,$D$5,1)

2nd year formula =SYD($D$4,$D$6,$D$5,1)

MS Excel 2010, 2007, 2003 provides SLN Financial Function to calculate DEPRECIATION under Straight Line Method

Function :- SYD (cost, salvage, life, per)

Cost :- asset or investment initial cost

Salvage :- value of asset or investment after useful life

Life :- Expected useful life of asset

Path

2007 :- Formula -- Financial -- SLN

2003:- Insert Menu -- Function -- Financial -- SLN -- ok

Question:-

Cost of purchase asset = $5,00,000.00

Useful life = 15 Years

Salvage Value after 15 years= $1000.00

Follow the Upper Written Down Value Method. Everything are same, only select SLN option instead of SYD option and no PER value .

So formula format is =SLN($D$29,$D$31,$D$30) instead of =SYD($D$4,$D$6,$D$5,1)