I have two questions.
How do I break up the expense account Fixed Assets - Deprecation into four separate depreciation accounts? I can’t work out how to do this.
Second question - my accountant has depreciated some of my fixed assets which has put an amount on the balance sheet and the same amount in P&L. Naturally when I start my new year 1st April, I will not see the entry on the P&L statement. What happens to the depreciation amount on BS. Does that always remain even long after I have got rid of the asset which won’t occur for a few years?
Fixed Assets - Depreciation is a control account so currently can’t be segmented.
The only other way is to record the Depreciation external of the Manager automated system.
The BS Depreciation gets reversed on the assets disposal. Say you have a vehicle with a cost of 20,000 and depreciation of 12,000 when it is disposed of for 10,000. The disposal entry would reverse the cost valve, reverse the depreciation value and post a Profit On Sale as 2000, as the book value was 8000 (20-12)
Oh I see. Thank you. I had a feeling that the depreciation would be reversed on assets disposal. Pity about not being able to segment Depreciation account. Thanks