Question

Write the formula to calculate the depreciation by using SLN (Straight Line) method in MS Excel.

Hint:

The \texttt{SLN} function in Excel calculates depreciation evenly across the asset's useful life, making it useful for assets that lose value at a constant rate.

Answer 1

Step 1: Understanding SLN Depreciation Formula. 
In MS Excel, the SLN function calculates depreciation using the straight-line method. The formula is: \[ \texttt{=SLN(cost, salvage, life)} \] Where: 
- cost is the initial cost of the asset. 
- salvage is the value of the asset at the end of its useful life (salvage value). - \texttt{life} is the useful life of the asset in years.
Step 2: Applying the Formula to the Given Table. 
In the table, the given values are:
- Cost = ₹5000
- Salvage = ₹10000
- Useful life = 5 years
The formula to calculate depreciation in this case will be: \[ \texttt{=SLN(5000, 10000, 5)} \] Step 3: Conclusion. 
The SLN function in Excel provides the annual depreciation amount of an asset based on its initial cost, salvage value, and useful life.