Dear,
Depreciation types:
Ordinary depreciation : This type of depreciation will come onto picture for normal use based on aging of equipment(Asset).
Special Depreciation : This type of depreciation is exclusively for tax based purpose for a particular period with respect to percentage base.
Unplanned Depreciation : This type of depreciation will come into picture when an equipment (Asset) got huge damage for example due to process parameters or due to some technical problem, which reduces the life of an Equipment.
Depreciation Methods:
Use Full Life method:
In this method system determines the rate based on the total use full life.For example you have a Blower which is bought for 10000/-. Here you mentioned usefull life is 10 years with 10% depreciation.So system calculates the depreciation 1000/- every year till it consumes total value of an ASSET.
Usefull life normally mentioned in units of years or Months.
Straight line method:
It is very simple method and most of the organizations uses this method.Using this method system calculates the rate of depreciation based on the depreciation key percentage rate till the life of an asset.
Straight line method name itself gives meaning of straight cut of an asset value.
For example You bought a centrifugal pump for 21000/- and you want to use for 10 years and thought of resealing it for 1000/-
Now system every year calculates :21000 - 1000=20000/10 = 2000/- for every year till it completes the total value.
Please find the below links for calculation of depreciation
Straight Line Depreciation Calculator
Double Declining Balance Depreciation Calculator
Regards,
Pardhu