Depreciations are normal in most of our assets or belongings; whether personal or business. Depreciation is a value that is placed on an item that causes the item to be less valuable that was it was previously. Depreciation is in effect on a yearly basis. Hence, your items lose its worthiness and you do not get as much for it as when you first bought it.
Even gems like diamonds can depreciate; it has a very high value on purchase but it cannot give as high a value after purchase. Most people would want to record the depreciation of their main assets such as houses, buildings, businesses or cars.
These items carry a higher value and depreciation. When you track the depreciation values of these items, it can help you decide on the best time to sell off for a profit. There are many important information that you can place in a depreciation form to assist you.
Hence, a depreciation template can contain the following columns:
* Name and address
* Reference Number
* Year of purchase
* Item life
* Salvage figure
* Depreciation years
You can record all your assets together in one depreciation template for easier references. Each item can be identified by its description or reference number if any. You can list down all the depreciation years of each item so that you can have a clear view of how much each item is worth.
Consider the attached sample template for your convenience.