Depreciation on Motor Vehicle purchased in the last quarter

111beckstar111

Hi All,
Please advise if I should charge a full years depreciation on a motor vehicle purchased in the final quarter of the accounts? It dosen't seem prudent to charge a full year however I may be incorrect? Any help would be appreciated.

Thanks
Rebecca

Monsoon

Normal policy is to charge a full years depn in the year of purchase and none in the year of sale. Depends on the accounting policies of the business concerned but that is the way I usually do it.

I know it doesn't make full logical sense but depn is only ever an estimate anyway. The important thing is to choose a depn rate that is reasonable.

111beckstar111

Excellent, thanks Monsoon, really appreciated.