Hope you found this one useful! TIMESTAMPS 00:00 - Intro 00:11 - What is Depreciation? 00:22 - What is Straight Line Depreciation? 00:35 - Example 01:20 - Step 1: Write Down What You Know 01:46 - Step 2: Build a Depreciation Schedule 02:34 - Step 3: Calculate the Depreciation Expense, Accumulated Depreciation & Book Values 03:13 - How to Calculate Straight Line Depreciation Expense 05:52 - Straight Line Depreciation Graph
Hi...really great videos. Could you please make a video on the landlord allowance and its accounting treatment ? Would need it for my current projects.
As an accountancy student in South East Asia, a prime challenge of learning Accountancy is understanding the language of the standards, because man they are really really confusing. But stuff like this makes it a bit more bearable, AND understandable. I really hope you cover more topics soon, and if possible, start a series targeted specifically for us students as well.
Second time this year your videos have saved my butt in accounting!! Your breakdowns are amazing, clear concise and actually give more insight into "what if" scenarios than the prescribed textbooks my professor recommended! Not only do you explaining the concept itself, you're showing the different ways of application and how it will affect the books. Thank you so much for making these videos - YOU'RE AWESOME!!
I've literally have been passing my accounting class because of you. Thank you so much bruh like honestly, you have no idea how much these videos help.
You need education to understand a falling linear funktion. You learn that in 6th grade (the function not the accountability/ to calculate the net profit of your company investment )
Your video is really straight forward. I'm an international student, but I can get what you're saying. Most of my instructors are speaking too fast that I can't even catch up the lesson. Thank you for helping me comprehend the method.
LITERALLY was stuck on this for my quiz and you have explained it PERFECTLY. I like how you give tangible examples and really drill down and explain things. Have subscribed and will keep coming back.
4:03 (calculation of depreciation expense) learn format YO DAC 5:12 Accumulated dep same as dep exp 5:12 Closing value = opening val- dep exp ☆repeat process again till no. of given years of useful life of asset (⚠️New opening value is previous closing value)
Thank you James! You broke it down beautifully at a nice pace and your charts are very helpful. Will look for more of your videos. I just purchased your pack of cheat sheets. I am in intermediate accounting. You are great!
Really great job with this video! You should be a professor for a university. I have a bachelors in Accounting and Finance and am going for my Masters in Accounting, and you're better than any professor I've ever had.
I am working as a bookkeeper with a company from last 7 months, and I am still struggling. And your videos are so helpful. You should get Dronacharya award in the field of Accounting sports. You are the best coach.
Thank you so much, I was so confused and all other videos are confusing as well, but your videos are so clear and well explained that really helped me understand the methods of depreciation!
Hi James I am studying aat level 3 e-learning and your videos are helping me a lot to understand everything. I was wondwring if you could say in this video the dual effect of the depreciation and de journals thank you
Hey James, could you make videos about bonds and other liabilities? Your video series are sooooo helpful and I also bought some cheatsheets on your website!! Thank you and stay safe!!
Trying to understand the depreciation value for the 2nd year when an upgrade was done to the asset and it extended the life by 2 more years and added an additional $2100 to the salvage value. Any guidance would be appreciated.
Sir James Good day , may I ask if where did you get the Value 1 for straight line depreciation rate? We're be multiply by useful life. Where did you get the Value or given ONE ?
Hey, thanks for this great video! Currently studying a Cert 4 in Bookkeeping & Accounting during this isolation, and your explanations has helped me solidify these concepts (as my learning guide I've been given are rife with grammatical errors and misspelt words, to add to my confusion even further!) Just a question regarding pro rata - how can your formula adapt to calculate pro rata? My layman's understanding is pro rata helps you depreciate your purchase by taking into account the actual time you have owned it, for example purchasing something halfway through the year. I'm presuming the formula would be different for the first and last year of ownership, if the asset is sold and then lastly scrapped half way through the year. Eager to hear your thoughts, as you succinctly present seemingly complex concepts in accounting (well, it sure seems complex to me!)
Thank you James for thoses wonderfull videos. Why did you use a residual value? Where I work we depreciate 100% of the Asset cost.. is there some Accountancy Rule to define this value? Thanks!
James your videos are excellent, I wanted to know if you have or plan to make videos that explain all the stock marketing RATIOS. PE Ratio, EPS etc. You explain things in very simplified manner with actual examples due to which a non-accounting person like me also understands. So I am really looking forward to videos that explain the ratios.
Great video as usually! I was struggling with this calculation and I’m still trying to understand. Just 1 question, If a company buy the machine on July 1, the machines supposed can use 9 years. I want to calculate the 9the years book value. So I need to calculate first year as 6/12 , then 2nd year to the 9th year as 1/9 ??
Hope you found this one useful!
TIMESTAMPS
00:00 - Intro
00:11 - What is Depreciation?
00:22 - What is Straight Line Depreciation?
00:35 - Example
01:20 - Step 1: Write Down What You Know
01:46 - Step 2: Build a Depreciation Schedule
02:34 - Step 3: Calculate the Depreciation Expense, Accumulated Depreciation & Book Values
03:13 - How to Calculate Straight Line Depreciation Expense
05:52 - Straight Line Depreciation Graph
thanx a lot bro.u have been a lot of help for me means a lot i hope u keep going with the good work
@@hmsports1668 No worries, all the best :)
Hi...really great videos. Could you please make a video on the landlord allowance and its accounting treatment ? Would need it for my current projects.
Definitely , your videos are great
anyone else here tryna learn a unit worth of accounting before their exam tommorow? 😅
Good luck!!
Acct1220 from uofg 😂 we got this
2 hours before 😭😭😭😭
Hope it went well! Good luck :)@@chaotik838
me xD
As an accountancy student in South East Asia, a prime challenge of learning Accountancy is understanding the language of the standards, because man they are really really confusing.
But stuff like this makes it a bit more bearable, AND understandable.
I really hope you cover more topics soon, and if possible, start a series targeted specifically for us students as well.
Dude you’re a literal goat man!!! Jesus Christ I wanna send you some home made enchiladas
Second time this year your videos have saved my butt in accounting!! Your breakdowns are amazing, clear concise and actually give more insight into "what if" scenarios than the prescribed textbooks my professor recommended! Not only do you explaining the concept itself, you're showing the different ways of application and how it will affect the books. Thank you so much for making these videos - YOU'RE AWESOME!!
Haha, no worries Susan! All the best
This video came out at the perfect time 👌🏾
Haha, hope you find useful!
I've literally have been passing my accounting class because of you. Thank you so much bruh like honestly, you have no idea how much these videos help.
Really, I am learning about Fix Asset for D365, and I got a big trouble of understanding the process. Thanks a lot man.
facebook.com/AssignGuruu
The quality of the videos is getting much better! Keep up the good work man! Really looking for the DDB method!!
Thanks Hai! I'm working on DDB right now
Depreciation gives me headache as a rookie bookkeeper. You deliver it in easy and effective way so thumbs up!
You need education to understand a falling linear funktion. You learn that in 6th grade (the function not the accountability/ to calculate the net profit of your company investment )
This man is a life saver.
Your video is really straight forward. I'm an international student, but I can get what you're saying. Most of my instructors are speaking too fast that I can't even catch up the lesson. Thank you for helping me comprehend the method.
Glad you enjoyed it!
LITERALLY was stuck on this for my quiz and you have explained it PERFECTLY. I like how you give tangible examples and really drill down and explain things. Have subscribed and will keep coming back.
Thanks Bibi, great to hear that it's making sense!
Love you James,,, please keep coming up with such videos,
Your dealer trick has helped me a lot
Cheers Akshat, I plan to release a bunch more very soon. Great to hear that you're enjoying DEALER!
Four lecture explained in such a short period. Thank you for this stuff. Helped me a lot
The right time out this video i think you my hero bro you saved two exams and this will be three
Good luck, I hope it goes well!
4:03 (calculation of depreciation expense) learn format YO DAC
5:12 Accumulated dep same as dep exp
5:12 Closing value = opening val- dep exp
☆repeat process again till no. of given years of useful life of asset
(⚠️New opening value is previous closing value)
Your videos are helping alot of people. Your way of teaching is amazing. ❤️❤️❤️
Thanks Muhammad!
Thank you James! You broke it down beautifully at a nice pace and your charts are very helpful. Will look for more of your videos. I just purchased your pack of cheat sheets. I am in intermediate accounting. You are great!
No problem Anna, thanks for supporting the channel! I appreciate it
This video is Highly recommended, thank you so much
Thanks, glad you enjoyed it!
JAMES YOURE SAVING MY DEGREE I LOVE YOU
Nice way of explaining this content and the video creation is magnificent.
Cheers Khalid :)
Bro with great power comes great responsibility
We await your videos
Please create videos on management accounting
Haha thanks Vijay and cheers for your suggestion
Great to see you back, James! We all missed you
Thanks Jens!
Really great job with this video! You should be a professor for a university. I have a bachelors in Accounting and Finance and am going for my Masters in Accounting, and you're better than any professor I've ever had.
Thanks Jason, all the best with your Masters Degree!
you have saved me in so many ways. thankk youuuu . please keep uploading more videos .
No worries, I'm happy to help!
My favorite teacher 😘
Thank you for making it so simple to understand.
your videos actually help so much. please keep making accounting videos!
Cheers, will do!
Really missed your accounting videos! Will you consider making videos about financial ratios?
Yes I'd like to cover them soon. Stay safe!
I am working as a bookkeeper with a company from last 7 months, and I am still struggling. And your videos are so helpful. You should get Dronacharya award in the field of Accounting sports. You are the best coach.
Hey Poonam, sorry to hear that you're having a hard time at work. I hope things improve for you soon. All the best!
Thank you so much, I was so confused and all other videos are confusing as well, but your videos are so clear and well explained that really helped me understand the methods of depreciation!
i wish you were my professor in uni, i love your vids, keep it up 🙌
Thanks! 😃
You posted this video the day my professor introduced the topic. Could not have timed that better lol
Haha that was by pure chance. Hope it helps!
This was extremely useful. You made it easy to understand. Thanks.
Thanks Rosa, glad it's making sense :)
An amazing accounting teacher with clear and well explanation 💯❤ thank you so much 🙏this video is really helpful 💯
Glad it was helpful!
Thanks James dude 😀 it is useful
Stay home stay safe
Cheers Munesh, hope all is well with you
Accounting Stuff yeah
Entire India is in lock down for 21 days,I heard UK is in severe stage
Stay home stay safe
Accounting Stuff man do videos regularly
@@HOMEFOODMANIACS Yes these are rough times for all. Please stay safe
@@HOMEFOODMANIACS I plan to release a bunch more whilst I'm 'Social Distancing'
Good to see you
Love from Pakistan 🇵🇰
dude this video is top notch ! it really helped me lol very well appreciated man
Wowwww first one to comment, love from India
Thanks for Fixed Asset video
Jammmmmmesssss!!!!!!
🙏🤘💯
Love from Canada! Stay safe!
I appreciate the amount of effort you put into your videos, subscribed!
Welcome aboard!
Best accounting channel :)
Thanks mate!
I am studying accounting in turkish , it's a bit different but your videos are really helpful, thank you !
It must be tough to learn accounting in 2 different languages! Good on you
Production quality is on point!
Thanks Aaron!
thanks for explaining this in a simple easy to understand way
No problem, hope it made sense!
Flawless video as always full of new techniques
Thanks Condura!
I'm watching this over and over again tnx man 🖤🖤
I hope every teachers' teaching styles were like that of yours.
You are a savior ❤❤❤❤
THank you for making that so digestible!!
No worries :)
This helped me so much
Thank you soo much man
Keep up the good job 👍🏻
Cheers Ravi, glad to hear it!
Great video... simple n to the point... thank u
Glad you enjoyed it!
Thank you James... another good one !
My God, this video is in perfect time
I am studying chapter 11 intermediate accounting 😂, perfect❤......
Serendipity!
Hello, thanks for the great lessons. I would like to know how do you comeup with the residual value?
Superb less time and quick overview
Thanks buddy :)
Thank u so much your videos are really really helpful
As usual perfect ❤️
Thanks Mo!
@@AccountingStuff
My professor ❤️❤️❤️
Hi James I am studying aat level 3 e-learning and your videos are helping me a lot to understand everything. I was wondwring if you could say in this video the dual effect of the depreciation and de journals thank you
Great stuff 👏 👏
Very well explained James...
Hey James, could you make videos about bonds and other liabilities? Your video series are sooooo helpful and I also bought some cheatsheets on your website!! Thank you and stay safe!!
Hey thanks for supporting the channel! Cheers for your suggestions.
This helped a lottt
That's great to hear!
Great video! Can you please do a video on the diminishing balance depreciation method as well
Cheers Joshua, thanks for your suggestion!
Very helpful indeed...thank you
No problem Jenny, I'm happy to help!
Just subscribed, Keep it up with the great content man!!
Cheers Dom, great to have you on board!
amazing stuff, loved all vids
Thanks Gayatri!
How do I journal or enter an assets residual value
Thanks mate! This was super helpful.
No problem Asfand, glad to hear it!
Thanks James !
You're welcome :)
I watch your video in Bangladesh.
Hello James, I am so glad I found you here on TH-cam, you have made my understanding of accounting so easy.Please can I contact you personally?
Hey Chika! Sure thing, it's easiest to email me or send a DM on instagram
Will you kindly do some videos of practise some problems(Advanced) those topic. I have a whole crew watching your videos.
Hey Arafath, thanks for your suggestion!
Trying to understand the depreciation value for the 2nd year when an upgrade was done to the asset and it extended the life by 2 more years and added an additional $2100 to the salvage value. Any guidance would be appreciated.
Awesome!
Thanks!
Sir James Good day , may I ask if where did you get the Value 1 for straight line depreciation rate?
We're be multiply by useful life.
Where did you get the Value or given ONE ?
Hi James, your videos are very helpful, can you make a video on Amortisation Schedule
Hey Jennifer, thanks for your request!
Great explanation. Subscribed.
Cheers, great to have you on board!
AWESOME DUDE.....really useful
Cheers!
Where's the next video? 😥😄😄😄
Very good method of teaching Accounting. It's really helpful. Thank you very much, James! 🙂
I'm working on the 4th in this series
How do you work out a piece of machinery life span? Great content btw
How will you calculate the depreciation if the asset was purchased in July?
Love the way you explain !!!!! It really helped me alot. Thank you so much James. Could you please make a video on Bad debts and their provisions.
Thanks for your suggestions!
Hello James, may you please do a video on straight line depreciation combined with the hire purchase
Hey Lorraine, thanks for your suggestion!
Love you sir ❤ from Afghanistan 🇦🇫
Thanks Abdul! All the best
Hey, thanks for this great video! Currently studying a Cert 4 in Bookkeeping & Accounting during this isolation, and your explanations has helped me solidify these concepts (as my learning guide I've been given are rife with grammatical errors and misspelt words, to add to my confusion even further!)
Just a question regarding pro rata - how can your formula adapt to calculate pro rata? My layman's understanding is pro rata helps you depreciate your purchase by taking into account the actual time you have owned it, for example purchasing something halfway through the year. I'm presuming the formula would be different for the first and last year of ownership, if the asset is sold and then lastly scrapped half way through the year. Eager to hear your thoughts, as you succinctly present seemingly complex concepts in accounting (well, it sure seems complex to me!)
Thank you James for thoses wonderfull videos. Why did you use a residual value? Where I work we depreciate 100% of the Asset cost.. is there some Accountancy Rule to define this value? Thanks!
This works great if you bought the asset on 1/1/xx, any other day not so much
Hello, do you have a video journaling fixed asset depreciation with salvage value?
I cover the journals in this video: th-cam.com/video/_pas1ETbrj8/w-d-xo.html
James your videos are excellent, I wanted to know if you have or plan to make videos that explain all the stock marketing RATIOS. PE Ratio, EPS etc. You explain things in very simplified manner with actual examples due to which a non-accounting person like me also understands. So I am really looking forward to videos that explain the ratios.
Thanks for your suggestion! Yes I'd like to create a whole series on this topic. It's in the works :)
I really find your videos helpful. Could you do a video on forecasting and valuation in financial accounting?
Hey Natasha, thanks for your suggestion!
你就是我的神！
Do you have a video on depreciation on sale of assets and how to work it out
Hey Karen! Unfortunately I haven't covered the sale of assets yet. But thanks for your request :)
Great video as usually! I was struggling with this calculation and I’m still trying to understand. Just 1 question, If a company buy the machine on July 1, the machines supposed can use 9 years. I want to calculate the 9the years book value. So I need to calculate first year as 6/12 , then 2nd year to the 9th year as 1/9 ??
You are awesome!
Cheers :)
How do you figure out the residual value at the start?
THANK YOU
Thank you!
You're welcome :)
Is this IFRS or GAAP method ? Or are they the same?
Hi James.. really love your video. Can you make video about revaluation on PPE?
Thanks Nabyhah and cheers for your suggestion!
Hi James! I was wondering why do you use '20X0 ... and 20Y0 ...' ?
Hey Andreea, I use them to refer to a non-specific year.