SUM OF THE YEAR'S DIGITS Method of Depreciation

💥Depreciation Cheat Sheet → https://accountingstuff.co/shop

In this video you'll learn how to use the Sum of the Year's Digits Depreciation Method in Accounting. This an accelerated variable depreciation technique. Others depreciation methods include...

▪ Straight Line Depreciation Method →    • STRAIGHT LINE Method of Depreciation ...  
▪ Double-Declining Balance Method →    • DOUBLE DECLINING BALANCE Method of De...  
▪ Sum of the Year's Digits Method →    • SUM OF THE YEAR'S DIGITS Method of De...  
▪ Units of Production Method →    • UNITS OF PRODUCTION Method of Depreci...  

You'll find out what depreciation means and how it applies to Non-Current Assets like a Solar Panel. Then we'll cover a full worked example where you'll learn how to apply the Sum of the Year's Digits Method in three simple steps. This episode of Accounting Stuff is part of a mini-series on Depreciation in Accounting. You can find the link to the whole playlist here ⬇️

🔗Full Depreciation Playlist →    • How to Calculate DEPRECIATION (Mini-S...  

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⏱️TIMESTAMPS
00:00 - Intro
00:10 - What is Depreciation?
00:21 - What is the Sum of the Year's Digits Method?
00:46 - Example
01:22 - Step 1: Write Down What You Know
01:49 - Step 2: Build a Depreciation Schedule
02:24 - Step 3: Calculate the Depreciation Rate, Depreciation Expense, Accumulated Depreciation & Book Values
02:53 - How to Calculate Sum of the Year's Digits Depreciation Rate
04:48 - How to Calculate Sum of the Year's Digits Depreciation Expense
07:48 - Sum of the Year's Digits Depreciation Graph

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