In this episode of Debit, Credit, Done!, Dean Quartermaine takes a deep dive into depreciation — what it is, why it’s used, and exactly how to calculate it using straight-line and reducing balance methods.

You’ll learn about residual value, why AAT often refers to carrying amount instead of net book value, and how to handle pro-rata depreciation when assets are bought or sold mid-year.

Includes:

• Clear explanations of straight-line and reducing balance methods

• How residual value affects your calculations

• Posting depreciation in the accounts

• A full worked example combining methods and pro-rata

• Dean’s top exam tips for avoiding common mistakes

Perfect for AAT Level 3 students preparing for Financial Accounting: Preparing Financial Statements, and anyone who wants to finally “get” depreciation.

🎯 Challenge task included at the end to test your skills.

🎧 Listen now and master one of the most tested topics in AAT accounting.