Arquivos de Categoria: Bookkeeping

Double Declining Balance Method: A Simple Explanation for Beginners Accounting, Finance, and Money Insights

For example, a five-year useful life yields a 20% straight-line rate (1/5), resulting in a 40% DDB rate. Every year you write off part of a depreciable asset using double declining balance, you subtract the amount you wrote off from the asset’s book value on your balance sheet. Starting off, your book value will be […]

Debits and credits Wikipedia

This double-entry T-account example ensures the accounting equation stays balanced, with total debits equal to total credits. T-accounts can also be used to record changes to a company income statement, where revenues (profits) and expenses (losses) are recorded. If you want to review debits and credits, see the lesson on debits and credits. And for a review of […]