The primary meaning of the word Depreciation is the fall in quality or value of a fixed asset through physical wear and tear in use or passage of time or from any other cause. Depreciation does take place irrespective of regular repairs and efficient maintenance. The accounting literature provides a number of methods for computing depreciation. In the MS-Excel 2010, depreciation can be computed under all the methods by entering the relevant formula. Besides this, the MS-Excel has built in functions DB, DDB, SLN, SYD, and VDB to calculate depreciation. The DB function returns the amount of depreciation of an asset for a specified period using the fixed-declining balance method. The DDB function returns the depreciation of an asset for a specified period using the double-declining balance method or some other method you specify. The SLN function returns the straight-line depreciation of an asset for one period. The SYD function returns the sum-of-years' digits depreciation of an asset for a specified period. The VDB (variable declining balance) function returns the depreciation of an asset for any period you specify, including partial periods, using the double-declining balance method or some other method you specify. With the help of these built in functions the depreciation can be computed quickly and easily. This paper describes the procedures of computing depreciation with the help of these built in functions. At the end two innovative examples have been given to make generalised worksheets so that depreciation can be computed for any type of assets with all the variable inputs.