Depreciation calculator
Spread the cost of a fixed asset evenly over its useful life: annual and monthly depreciation, a schedule and the carrying amount.
Schedule by year
| Year | Depreciation | Accumulated | Carrying amount |
|---|---|---|---|
| 1 | 3,240,000 | 3,240,000 | 14,760,000 |
| 2 | 3,240,000 | 6,480,000 | 11,520,000 |
| 3 | 3,240,000 | 9,720,000 | 8,280,000 |
| 4 | 3,240,000 | 12,960,000 | 5,040,000 |
| 5 | 3,240,000 | 16,200,000 | 1,800,000 |
How is depreciation calculated?
The calculator applies the straight-line method under NAS No. 5 “Fixed Assets” (paragraph 39, sub-paragraph “a”): depreciation is charged in equal shares of the depreciable amount over the useful life.
- Depreciable amount = initial cost − residual value (definition in paragraph 3).
- Annual depreciation = depreciable amount / useful life (years).
- Monthly depreciation = 1/12 of the annual amount (paragraph 43).
- If the residual value is not material it may be ignored (paragraph 48): then enter 0.
Example
An example made up by the author: computer equipment for administrative staff, initial cost 18,000,000 soums, residual value 1,800,000 soums, useful life 5 years. The depreciable amount is 16,200,000 soums, annual depreciation 3,240,000 soums, monthly 270,000 soums.
| Year | Depreciation | Accumulated depreciation | Carrying amount |
|---|---|---|---|
| 1 | 3,240,000 | 3,240,000 | 14,760,000 |
| 2 | 3,240,000 | 6,480,000 | 11,520,000 |
| 3 | 3,240,000 | 9,720,000 | 8,280,000 |
| 4 | 3,240,000 | 12,960,000 | 5,040,000 |
| 5 | 3,240,000 | 16,200,000 | 1,800,000 |
What is the journal entry?
Under NAS No. 21, depreciation charged on fixed assets is recorded on the credit of the accumulated-depreciation accounts (0200), against the expense accounts (paragraph 29). In the example above, the monthly amount is:
| Transaction | Dr | Cr | Amount |
|---|---|---|---|
| Monthly depreciation charged on computer equipment used for administrative purposes | 9420 | 0250 | 270,000 |
Which account is debited?
It depends on how the asset is used (NAS No. 21, rows 1–4 of the correspondence table for accounts 0200): main, auxiliary production and service units — 2010, 2310, 2710; general production purposes — 2510; trading organisations — 9410; administrative purposes — 9420. The credit side is the accumulated-depreciation account (0211–0299).
What does the calculator not cover?
Only the straight-line method is calculated. NAS No. 5 provides three more: the units-of-production method (paragraph 39, “b”), the double-declining-balance method (paragraph 41) and the sum-of-the-years method (paragraph 42). The method is set in the entity's accounting policy (paragraph 45).
Some items are not depreciated: for example, land plots and fully depreciated fixed assets (NAS No. 5, paragraph 38; NAS No. 21, paragraph 26). Depreciation starts from the date the item is accepted into fixed assets and put into operation (paragraph 33), so the number of months in the first year depends on that date; the calculator gives a schedule by full years.
The calculator is for accounting purposes; for tax accounting see the Tax Code. Any rounding difference is corrected in the last year.
Related
- Glossary: depreciation
- Glossary: depreciable amount
- Glossary: fixed asset
- How depreciation on fixed assets is calculated
- 0250 — Accumulated depreciation of computer equipment
- VAT calculator
Sources
- NAS No. 5 “Fixed Assets” (Order No. 133 of the Minister of Economy and Finance, 14 June 2024; registered with the Ministry of Justice on 9 August 2024, No. 3546): paragraphs 3, 33, 38, 39, 41–43, 45, 48.
- NAS No. 21 (chart of accounts): paragraphs 25, 26, 29 and the correspondence table for accounts 0200.
- Example and calculations: made up by the author.