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DB Function in Excel

Today, I spent my time to know db function in excel. It is easy but I forgot to use it. My problem is of using the figure of period and month in its formula.

Formula of db is

=DB(initial value; salvage value; useful life; period; month)

It can be used through financial function db. Its full form is declining balance. After some hard work, I understood that to show period and month is very necessary.

Because this depreciation is calculating on the current balance not on the original cost, so, period will be the first year, second year, third year or the year in which we are calculating the depreciation. Second to show the month is also very important. We know the 12 months are equal to one year. It means whether we are calculating the depreciation of first year or depreciation of 9th year, our first year is 12 months because we have bought same asset at the beginning of first year. So, month will always be the 12. If we have not bought at the beginning of the year, we have to mention the months. For example, we have bought the asset at the end of 7th month. It means, every calculation of depreciation under db, we will use 3 because 3 months are using the asset. Ok, if you want to learn more, see following video tutorial.

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Vinod Kumar ( Educator )

Vinod Kumar ( Educator ) is founder of this website

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