Depreciation Schedule

- useful when making a financial statement
- it gives you an idea when to purchase or replace a physical asset


Key Terms:

• Depreciation - the lost in value of physical assets through its use
• Depreciation Charges - the yearly deposits into the depreciation fund
• Depreciation Fund - portions of a given amount at the end of its useful life
• Book Value of Asset - sum in the depreciation fund

Sample problem
A laptop costing ₱ 28,000 has usability for 4 years and it has a scrap value of ₱ 2,500. Find the average yearly depreciation. Prepare a depreciation schedule showing the book from year to year.

Depreciation = Cost - Scrap Value

₱ 28,000 - ₱ 2,500

= ₱ 25,500

Average yearly depreciation

₱ 25,500 = ₱ 6,375

4

The yearly depreciation is ₱ 6,375 each year.

Bank Reconciliation and Checks

Yesterday, we were taught about bank reconciliation and check. Checks are more convenient and more practical to carry around than cash specially when dealing with huge amounts of money but, one has to know how to use it properly and responsibly so as not to encounter problems like bouncing checks. I find the lesson interesting and very useful since I know that we will be able to encounter such things in the near future (when we become BILLIONAIRES :)) ).

ow yeh!

Some terms to remember:

• Bank reconciliation - process of bringing the bank's monthly report for each depositor showing deposits made, check written, cancelled checks and service charges.
• Checkbook - contains check and check stub
• Outstanding checks - checks issued by depositor but not yet presented to the bank for payment
• Deposits in transit - deposits made but late to be included in monthly bank statement.
• Cancelled checks - checks that have been paid by the bank

Sample check.
One must write legibly and without errors on a check. 

But then, we sometimes commit mistakes and errors. In such situations, there is a formula to follow in order to fix everything. Below is a sample formula on how to do a Reconciliation Statement.

There you go! :)

Looking forward to our next lesson :D

Checked by Prof. Crisencio Paner

Our Professor

Of course, we can't do math by ourselves (well, i don't know about the others but that's true for me :D ). Fortunately, there is someone who guides us as we share to the world what we learned about Business math.

He is Professor Crisencio Paner.

To know more about him, click the link below.

Trust me, this is a very impressive Curriculum Vitae :D

Introduction and Lesson 1

I am not really good in math nor in writing so I really don't have an idea on how to do this while thinking about numbers. Good thing Math 100a is not the algebraic, trigonometric, Jurassic, full-of-terror math I know. It's more on business, which I think is a bit interesting cause it involves money ($_$).


Last time, we were taught about profit and loss. Sir Cris Paner (curriculum vitae) made it easier for us to understand. His examples were practical and clear. He also gave us an exercise, which I was able to answer despite of having no calculator (though I borrowed one from a friend ((: cause I can't do it manually) and bad problem solving abilities.


Looking forward to our next lesson. :D