That feeling when your Closing Book Value matches your Residual Value... 😌 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
James, You should be paid very well for the knowledge you are sharing with others...you put many, many instructors to shame. I used to fear accountants at year end...your videos have made me so much less stressed ( I'm a bookkeeper). Thank you so much for helping us here on your channel. You are brilliant!
Started from The Accounting Equation for Beginners video and made it here after watching 36 of your videos. You Legend James :) The marathon has come to an end and did not get sick of it.
LOVE your videos!! Some suggested topics: - Accounting Jargon: an overview of the common expressions and what they mean "P&L, COGS, Gross Profit versus Net Profit" etc. - SaaS accounting since there are so many software businesses these days - Interpreting Financial Statements....so what do they actually mean and what can we learn about the business from them? I have watched some other videos lately and yours are head and shoulders above all the others. I wish you much success and look forward to more videos to come!
Thank you so much for all the financial accounting videos. I failed my exam last year coz the books does not explain as well as you. im writing exam again tomorrow and i feel so positive this time around thanks to you!
Hi, I want to thank you for making these videos. Really informative and intuitive, you've made my lock down worthwhile. Thank you from New Zealand!!!!!
Hi James ! Thank you for posting these videos that make accounting understandable and fun ! You are truly amazing ❤️❤️ please never stop posting these videos. I loved the video of your’s on Q&A on debit and credit. Could you please do more videos where you go through Questions ? Stay safe 🙏🏻💓 Hope you get the much deserving subscribers and success 💓
So compare to the double declining balance method, the depreciation expense formula is different. SYD is the rate x (asset cost - residual value) which is a fixed depreciable cost. While the DDB is rate x the opening book value which is changing every year
Superb video, as all of yours that I've seen. One suggestion and a big request to you - please explain in some of the next episodes why and when which of those depreciation methods should be used! Regards!
Equipment was purchased for R460, 000 with an estimated life of 10 years and a residual value of R19, 000. What is the depreciation expense for the first 5 years using each of the following separate depreciation methods? a. Double-declining balance (15) b. Sum of the years’ digits please help
Hi! I would like to check the process when working with developers and thay buy Land. How to record Land and everything related to that subject. Thank you!
In every other video I’ve looked at, they don’t start with the opening book value to calculate the first years depreciation expense. Why don’t you start the first year as 20,000? (The 25,000 - Salvage value)
your videos have actually been super helpful to me! a kindergartner can definitely understand this. i have a question, though. if, for instance, the residual value of the asset changed in year 3, let's say to $3,000, will the SYD also change? will it become 3*4/2=6 and the depreciation rate then becomes 3/6? or shall we just continue with the 3/15? i hope you'll be able to answer. thank you!!
Great video. I would be grateful if you make a video about outsourcing and automation regarding accounting. I am currently a management major, and I am really interested in accounting. However, I am concerned about outsourcing and automation. Thank you.
I have one question If James or anyone knows plz let me know. If I purchased a machine at the mid of the year than how I find the rate of that year ? Using SYD method ??
Please make a video about no monetary exchanges with and without commercial substance (as well as with and without boot). It would be greatly appreciated.
My friend, I don't think that is the meaning of depreciation. Depreciation is simply the systematic allocation of the depreciable amount over the useful life of the asset. For example, obsolescence and wear and tear are reasons for impairment, not depreciation. How do you see this?
Hi James, I have a truck for a business I purchased in 2019, how do I find out the residual/salvage value of the vehicle. Best - appreciate it in advance.
That feeling when your Closing Book Value matches your Residual Value... 😌
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
Very thanks for above information
@@mansoormagsi1752 You're welcome :)
man great content
@@HarshSingh-ll1sq Thanks! Glad you enjoyed it
James,
You should be paid very well for the knowledge you are sharing with others...you put many, many instructors to shame. I used to fear accountants at year end...your videos have made me so much less stressed ( I'm a bookkeeper). Thank you so much for helping us here on your channel. You are brilliant!
Started from The Accounting Equation for Beginners video and made it here after watching 36 of your videos. You Legend James :) The marathon has come to an end and did not get sick of it.
Very impressive, I hope you learnt a few things! If you have any feedback / suggestions I'd love to hear them
I never realized accounting could be this interesting and easy. You totally change my perspectives.
Thanks, I'm happy that you're getting into it :)
@@AccountingStuff 'getting', I am drowning into it. 🙌🏻🎀
@@qd7308 Nice one!
@@AccountingStuff 🎀 Thanks
hands down this the the best educational channel worldwide
Thanks, I appreciate it!
Wow. I love that the video is divided into sections for better navigation. Great stuff. Also, great video once again.
Thanks, I'm glad you enjoyed it!
Thanks a lot! You're the best one discussing the foundation and basics of accounting. These are great refresher videos for me.
LOVE your videos!! Some suggested topics:
- Accounting Jargon: an overview of the common expressions and what they mean "P&L, COGS, Gross Profit versus Net Profit" etc.
- SaaS accounting since there are so many software businesses these days
- Interpreting Financial Statements....so what do they actually mean and what can we learn about the business from them?
I have watched some other videos lately and yours are head and shoulders above all the others. I wish you much success and look forward to more videos to come!
Hey Stacy, thanks for your suggestions! Much appreciated :)
Thank you so much for all the financial accounting videos. I failed my exam last year coz the books does not explain as well as you. im writing exam again tomorrow and i feel so positive this time around thanks to you!
Best of luck!!!
I’m so happy your doing these
Best Accounting Teacher!
Who else watches the commercials to support James 😅
Hi, I want to thank you for making these videos. Really informative and intuitive, you've made my lock down worthwhile. Thank you from New Zealand!!!!!
Cheers Martin, glad you're enjoying them
@@AccountingStuff Thanks man!!!
Your videos are amazing. I mean the quality.. its just so eye pleasing
Cheers Sehab!
Hi James ! Thank you for posting these videos that make accounting understandable and fun ! You are truly amazing ❤️❤️ please never stop posting these videos. I loved the video of your’s on Q&A on debit and credit. Could you please do more videos where you go through Questions ? Stay safe 🙏🏻💓 Hope you get the much deserving subscribers and success 💓
Hey Shaliza, thanks! I plan to release loads more videos :)
Awesome videos! Keep up the great work.
Verrrryyyyy helpfull!!! thank you
No worries Kunaal!
So compare to the double declining balance method, the depreciation expense formula is different. SYD is the rate x (asset cost - residual value) which is a fixed depreciable cost. While the DDB is rate x the opening book value which is changing every year
Superb video, as all of yours that I've seen.
One suggestion and a big request to you - please explain in some of the next episodes why and when which of those depreciation methods should be used!
Regards!
Cheers mate, I'll take your suggestion on board :)
Thanks for helping me with my homework again!!!
No problem :)
May God bless you . Thank you so much.
Do more videos
I like your explanations more than my teachers
JAMES I LOVE YOUR CHANNEL :)
Cheers Beyaz, glad you're enjoying it :)
Hey bro,,,,,👌👌👌
You present every thing very simply,
Thank You so much 😍😍
No worries!
Dude what software do you use for editing because your video is EPIC!!
Hey Pako, I edit in Final Cut Pro X
I was wondering that too
33.33% × 20000 = 6666 right? Ik it's just one digit wrong but its important coz its accs.. please correct me if I'm wrong
he did every year depreciation expense incorrecly
Thanks sir this concept is clear 😊
That's great to hear :)
How do you arrive at the residual value and useful life?
Merci beaucoup pour votre video top et le partage 👍😁👏
De rien :)
*This is so helpful, thank you!*
That's great to hear!
Equipment was purchased for R460, 000 with an estimated life of 10 years and a residual value of R19, 000. What is the depreciation expense for the first 5 years using each of the following separate depreciation methods?
a. Double-declining balance (15)
b. Sum of the years’ digits
please help
Hi! I would like to check the process when working with developers and thay buy Land. How to record Land and everything related to that subject. Thank you!
So where do we put running cost ?
In every other video I’ve looked at, they don’t start with the opening book value to calculate the first years depreciation expense. Why don’t you start the first year as 20,000? (The 25,000 - Salvage value)
Can you make a video on *Consignment* ?
Your Videos are totally Awesome!
Looking forward for more :-)
Cheers mate! I'm working on more as we speak
thank you so much for the videos !!!!very helpful
You're very welcome!
your videos have actually been super helpful to me! a kindergartner can definitely understand this. i have a question, though. if, for instance, the residual value of the asset changed in year 3, let's say to $3,000, will the SYD also change? will it become 3*4/2=6 and the depreciation rate then becomes 3/6? or shall we just continue with the 3/15? i hope you'll be able to answer. thank you!!
Such good content thank you for your videos! - suggestion - direct costing and allocation of overheads (variable/absorption costing methods!!)
Thanks for your suggestions!
Very helpful thanks
Thanks, glad to hear it :)
Great video. I would be grateful if you make a video about outsourcing and automation regarding accounting. I am currently a management major, and I am really interested in accounting. However, I am concerned about outsourcing and automation. Thank you.
Thanks, and cheers for your suggestion! I'll keep that in mind for future vids :)
Video on capital allowance deductions and how to calculate them ?
Thanks for your request!
Hiii. What about reverse sum of years digits method?
I have one question If James or anyone knows plz let me know.
If I purchased a machine at the mid of the year than how I find the rate of that year ? Using SYD method ??
How do you determine residual value?
What if the asset is sold for an estimated value instead of residual value
Can you cover the internal control system and principles in internal control
Hey Rodolfo, thanks for your suggestion!
why did you multiplied the SYD depreciation rate by the 20,000 not by the opening balance 18,333 in the next year?
Thank you so much!!! I have an accounting exam tomorrow and was having a mental breakdown . Your video has saved me to a great extent
You've got this!!! Good luck :)
perfect
good mr. james
Thanks Ade :)
@@AccountingStuff your welcome ☺️
Please make a video about no monetary exchanges with and without commercial substance (as well as with and without boot). It would be greatly appreciated.
Thanks for your suggestion!
How are you james
After a small gap I watched your video
All good here thanks, lockdown is slowly lifting in Canada atm
can you please do a video about0-- property plan and equipment
-- intangibles assets
Thanks for your suggestion!
hey, can you do accounting on the financial statement for publication purpose :(
Thanks for your suggestion!
My friend, I don't think that is the meaning of depreciation.
Depreciation is simply the systematic allocation of the depreciable amount over the useful life of the asset.
For example, obsolescence and wear and tear are reasons for impairment, not depreciation.
How do you see this?
Hi James,
I have a truck for a business I purchased in 2019, how do I find out the residual/salvage value of the vehicle.
Best - appreciate it in advance.
That depends... which accounting standards are you using?
What do you mean? You mean US GAAP or intern. GAAP?
I live in the states and use accrual method .
Can you make a video about accounting for foreign currencies and gain/loss from foreign exchange? Also, about buying assets using foreign currency.
Cheers for your suggestions!
Rolling retained earnings from book to tax?
Thanks for your suggestion!
Love all your "stuff". Any chance that Paypal payment can be added as an option in the store?
Thanks, I'm glad you're enjoying the vids! I added Paypal to the store today :)
@@AccountingStuff Got my "stuff" downloaded. Thanks
Can you do one with do plant machinery in construction please
Thanks for your request!
Hi Sir! Sir, I would like to know about accounting related to construction business.
Hey Saqib, thanks for your suggestion!
Ayo nicee.
Cheers :)
Allow me to use your example on our reporting.
How did you get the depreciation to be 12000
he did a calculation slightly off
Depreciation expense at 2 years was not supposed to be what he got
Thx
You're very welcome :)
Which Accounting Body are you member of?
the ICAEW
@@AccountingStuff I am in 12th std and after 12th I also want to become CA so which is better ACCA or ICAEW ?
Which University your Graduate From
Hey Sid, I graduated from Bristol (UK)
👍👍👍👍👍👍👍👍👍
I actually find him attractive 🥰
great video, clear explanation. it's just that the tone of your voice make accounting looks and sounds scary, difficult, and unfriendly.
Thanks for your feedback :)
Plz speak slowly 🙏 from pakistan requested sir pl
Thanks for your feedback!
Thanks sir 👍
I’m passing my exams because of you. Thank you!🥹