depreciation of fixed assets.
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Please help.<BR><BR>Asset register shows accumulated total of fixed assets.(depreciation)<BR><BR><BR>Provision for depreciation account shows. b.f balance 2000<BR><BR>But in year dispose of fixed assets. and the depreciation that was accumulated to date was say 200.<BR><BR>so I have<BR><BR>Cr 200 Dr 2000<BR><BR>my problem is: as I have only a total in my fixed assets register. How do I show this years depreciation in my provision for depreciation account. Hope somebody understands what I am talking about
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depreciation of fixed assets.
I think I understand.<BR>In the Fixed Asset Register all you need to show is the date of the disposal and the disposal proceeds.<BR>In the ledger accounts you need to do the following 3 things:<BR><BR>1) Debit the Disposal and Credit the Fixed Assets at cost with the original cost (£2,000)<BR><BR>2) Debit the Disposal and Credit the Provision for Depreciation account with the accumulated depreciation to date (£200)<BR><BR>3) Debit the bank (or whatever) and Credit the Disposal with the proceeds.<BR><BR>Any balance on the Disposal account then goes to the Prift and Loss as a preofit (or loss) on disposal.<BR><BR>Does this clatify things?<BR><BR>Graham Blott0 -
depreciation of fixed assets.
Hi. With the Accumulated Depreciation, would you not credit Disposals, and debit Provision for Dep'n a/c?<BR><BR>Scotty.0 -
depreciation of fixed assets.
Oops - of course you would. <BR><BR>Sorry, first day back after the Easter gholidays and I think I forgot to engage my brain.<BR><BR>Graham Blott0