Depreciation on Motor Vehicle purchased in the last quarter

111beckstar111
111beckstar111 Registered Posts: 158 Dedicated contributor 🦉
edited June 18 in AAT member discussion
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

Comments

  • Monsoon
    Monsoon Registered Posts: 4,020 Beyond epic contributor 🧙‍♂️
    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
    111beckstar111 Registered Posts: 158 Dedicated contributor 🦉
    Excellent, thanks Monsoon, really appreciated.

Categories

Privacy Policy