Double entry for depreciation worked example

Video Title Double Entry for Depreciation: Reducing Balance Method & Ledger Accounts (Worked Example) Video Description In this tutorial from Kisembo Academy, Arnold provides a complete worked example of accounting for depreciation over a three-year period (2015–2017). Using a computer purchased for $2,000, we demonstrate how to apply a 20% depreciation rate using the reducing balance method. This video is essential for students who want to understand the mechanics of the "Big Picture" in financial accounting. We don't just calculate the numbers; we show you exactly where they go in the books. Key Learning Objectives: Method Comparison: A side-by-side look at the Two-Stage Method (using a separate Provision for Depreciation account) and the Single-Stage Method (direct transfer to P&L). Ledger Account Mastery: Step-by-step preparation of the Computer Account, Accumulated Provision for Depreciation, and the Depreciation (Provision) Account. Financial Statement Extracts: Learn how to present depreciation in the Profit and Loss Account and how to display assets at Net Book Value in the Balance Sheet. Reducing Balance Calculations: Watch how to calculate depreciation on the updated balance each year ($400 for Year 1, $320 for Year 2, and $256 for Year 3). Whether you are preparing for your CPA exams or a university accounting module, this worked example will clarify the double-entry rules for non-current assets. #Accounting #Depreciation #DoubleEntry #ReducingBalance #FinancialAccounting #KisemboAcademy #AccountingStudent #CPA #Bookkeeping Join this channel to get access to perks:    / @kisembo.academy   Edgar