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Re: Example of depreciation transactions?

On Sun, 2006-11-12 at 14:16 -0800, Chris Travers wrote:
> Contra accounts are useful for things like allowances.  For example,
> allowance for doubtful accounts, allowance for returns, and things
> like that.  Depreciation is an expense and should be treated as such
> (i.e. it is analogous to purchases of non-capital goods but just
> amortized over time).

My understanind is like this:

                              Debit            Credit
  Purchase a $3oo printer:
Office Equipment                300.00
Bank Account                                      300.00

  End Of Year Deprication (Year 1)
Amortization Expense            120.00                    40% of $300
Acummulated Amortization                          120.00

  End Of Year Deprication (Year 2)
Amortization Expense             72.00                    40% of $180
Acummulated Amortization                           72.00

  Disposal (Sold to employee for $50)
Bank Acount                      50.00
Office Expense                   58.00
Accumulated Amortization        192.00
Office Equipment                                  300.00

Tony Fraser
Sybaspace Internet Solutions                        System Administrator
phone: (250) 246-5368                                fax: (250) 246-5398