CH 12 Depreciation - 2

DEPRECIATION AND DISPOSAL OF NON-

CURRENT ASSETS
Chapter 12
E-SAFETY
WELL-BEING
MY PRAYERS
MY STRENGTH
I will always focus during the lesson and participate.
I will always keep all the required stationery handy and be
prepared for lesson.
I will ask for help whenever needed.
I will only speak when asked.
I will keep myself positive and make sure that I take
the responsibility and initiative of my own learning.
I will always be responsible
I will always be respectful
I will always be work as a team and collaborate
I will always be complete the task, homework and
assignments on time
I will work towards my target grade and goals
Date:
Topic: Accounting or depreciation and disposal of non-
current assets
Lesson objective:
• List the different methods of calculating depreciation
• Define straight line method
• Calculate depreciation by applying straight line method

LEARNING OBJECTIVES

 List the different methods of calculating depreciation

 Define straight line method
 Calculate depreciation by applying straight line method
Date:
current assets
Lesson objective:
STARTER ACTIVITY
Read pg. 155 and list out the 3 methods of depreciation.

Date:
current assets
Lesson objective:
Straight line method of depreciation • Calculate depreciation by applying straight line method
Date:
current assets
Lesson objective:
Task 1
Discuss in groups & write
• Q1) What is straight line method of depreciation? Pg. 155
• The straight line method of depreciation is where the same
amount of depreciation is charged each year. This method is
used where each year is expected to benefit equally from the
use of the asset.
• The formula used for calculating the annual depreciation using
this method is:
Date:
current assets
Lesson objective:
Task 2
Group Task
Solve Walkthrough 12.1. Pg.156
Calculate the annual depreciation charge:
a) as an amount of money
b) as a percentage Amt of dep. each yr.

Cost of asset
Date:
Task 3
current assets
Lesson objective:
Hands-on Activity
1. What is residual value (salvage value)? Read pg. 156

The estimated value of an asset at the end of it’s working life is known
as a residual value.
2. Solve Walkthrough 12.2
Calculate the annual depreciation charge when residual value is given:
a) as an amount of money
b) as a percentage (based on the original cost).
Date:
current assets
Lesson objective:
Extension Task
Write down
 What is reducing balance method of depreciation?
 How is it different from straight line method of
depreciation?
Date:
current assets
Lesson objective:
Plenary
1. What are the three methods of depreciation?

Straight line, Reducing balance & revaluation method.
2. Explain the Straight line method of depreciation. State the formula for
this method.(amount & percentage)
In this method, the depreciation expense is spread evenly over the asset's useful
life, resulting in a constant depreciation amount each accounting period.
Amount method: Depreciation Expense = (Cost of Asset - Salvage Value) / Useful
Life
Percentage method: Depreciation Rate = (1 / Useful Life) * 100%
3. Why is it important for businesses to provide depreciation on non-
current assets?
Depreciation allows businesses to accurately reflect the wear and tear or obsolescence of their
assets over time. This is crucial for presenting a true and fair view of the company's financial
position in its financial statements.
Date:
current assets
Lesson objective:
SUCCESS CRITERIA
I am not clear on this I am a bit confused I can do the
I can and need more help tasks confidently
- List the different methods of

calculating depreciation
- Define straight line method
- Calculate depreciation by
applying amount method of
straight line depreciation
- Calculate depreciation by
applying percentage
method of straight line
depreciation.
Date:
current assets
Lesson objective:
Homework
a) Calculate how much depreciation will be charged in Koala’s income statement

for the next three years under straight line method of depreciation.
c) What will be the benefits & limitations of using the straight line method of
depreciation?
Date:
current assets
Lesson objective:
SELF-ASSESS
a) Calculate how much depreciation will be charged in Koala’s income statement

for the next three years under straight line method of depreciation.
c) What will be the benefits & limitations of using the straight line method of
depreciation?
IF YOU NEED HELP CONTACT:
 Teachers
 Student Council
members YOU
ARE
 School Counsellor SAF

E!
 Section Head
 Vice Principal
 Principal
Thank You!

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DEPRECIATION AND DISPOSAL OF NON-

 List the different methods of calculating depreciation

Read pg. 155 and list out the 3 methods of depreciation.

b) as a percentage Amt of dep. each yr.

1. What is residual value (salvage value)? Read pg. 156

1. What are the three methods of depreciation?

- List the different methods of

a) Calculate how much depreciation will be charged in Koala’s income statement

a) Calculate how much depreciation will be charged in Koala’s income statement

 School Counsellor SAF

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