Annual depreciation expense = (cost-residual value)/depreciation period or = cost× (1-residual value rate)/depreciation period, where monthly depreciation = original value of fixed assets× (1-residual value rate)/depreciation period/12, and annual depreciation rate = (/kloc-0)

For example: 1. The company's annual rent is 296,000 yuan. How to calculate the accumulated depreciation every month? It will be used in June.

Monthly depreciation = 296,000 * (1-0.05)/20/12 =1171.67 yuan.

The accounting entry is: Debit: Manufacturing Expense 1 17 1.67? Loan: accumulated depreciation 1 17 1.67.

Extended data:

main feature

1, the value of fixed assets is generally relatively large, the use time is relatively long, and they can participate in the production process repeatedly for a long time.

2. Although wear occurs in the production process, it does not change its physical form, but gradually transfers its value to the product according to its wear degree, and the value transferred part is recovered to form a depreciation fund.

As a monetary form of fixed assets, fixed funds also have the following characteristics:

1, the period of fixed capital is relatively long, which does not depend on the production cycle of products, but on the service life of fixed assets.

2. The value compensation and physical renewal of fixed funds are carried out separately. The former is gradually completed with the depreciation of fixed assets, and the latter is realized by using the depreciation funds accumulated at ordinary times when the fixed assets are unusable or unsuitable for use.

3. When purchasing and building fixed assets, you need to pay a considerable amount of monetary funds. This investment is one-off, but it will be recovered by stages through depreciation of fixed assets.

References:

Baidu encyclopedia-? fixed assets