What is a Depreciation Schedule?

A Depreciation Schedule is a listing of every Fixed Asset a company owns. It includes the following for each asset:

  1. Asset Name (2015 Ford F150, Hobart Mixer, Hyster Forklift)
  2. Any identifying information like a Vehicle Identification Number or an Asset tag number)
  3. Date the asset was placed in service
  4. Cost of the asset
  5. Class life of the asset
  6. Method of Depreciation being used (each asset can have a different method)
  7. Estimated Salvage Value
  8. Current Year Depreciation
  9. Accumulated Depreciation
  10. Net Book Value

Companies with large numbers of Fixed Assets (think about UPS and its fleet of vehicles, planes, buildings) can group like assets together on the Balance Sheet, but a Depreciation Schedule is used to track each individual asset behind the scenes.

AssetDate of ServiceCostLifeMethodSalvageCY DepreciationAcc. DepreciationNBV
2020 Ford F1508/1/20xx15,0005Straight Line 5002.90087006,300
Hobart Mixer7/1/20xx20,0007DDB2,0005,715571514,285
Table showing a sample depreciation schedule.

Note that the Depreciation Schedule amounts tie out (match) to the amounts on the Balance Sheet for Cost, Accumulated Depreciation, and Net Book Value. This is an important reconciliation to ensure no mistakes were made in recording depreciation.

2020 Ford F15015,000
Accumulated Depreciation (8,700)
Net Book Value 6,300
Snippet of Balance Sheet showing accumulated depreciation.

For more articles about depreciation methods, check out the following:

Caroline Grimm

Caroline Grimm is an accounting educator and a small business enthusiast. She holds Masters and Bachelor degrees in Business Administration. She is the author of 13 books and the creator of Accounting How To YouTube channel and blog. For more information visit: https://accountinghowto.com/about/

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