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Re: CCA / Depreciation of Capital Assets ?
- Subject: Re: CCA / Depreciation of Capital Assets ?
- From: Leah Kubik <..hidden..>
- Date: Wed, 25 Apr 2007 16:46:12 -0400
On Tuesday 24 April 2007 20:40, Tony Fraser wrote:
> I know I'm late answering this but I'm just catching up on the list.
Your response below was extremely useful. I'll probably add something to the
wiki regarding this. I'll be giving this a shot with my own accounting, but
it makes a lot of sense. I had nearly come to this sort of conclusion on my
> Normally in Canada and I think in most parts of the world this is
> handled with 3 accounts
> An asset account such as "Computers"
> An asset account such as "Accumulated Amortization, Computers" that is
> normally a negative balance therefor it is a contra account
> An expense account such as "Computer Depreciation"
> Dr. Cr.
> When you buy a computer:
> Computers 1000.00
> Bank Account 1000.00
> End of year 1:
> Computer Depreciation 400.00 40% of $1000
> Accumulated Amortization, Computers 400.00
> End of year 2:
> Computer Depreciation 240.00 40% of $600
> Accumulated Amortization, Computers 240.00
> End of year 3:
> Computer Depreciation 144.00 40% of $360
> Accumulated Amortization, Computers 144.00
> Bank Account 75.00 sale of
> computer Accumulated Amortization, Computers 784.00
> reversing entry Computer Depreciation 141.00
> residual value Computers
> 1000.00 reversing entry
> As Chris said there's no way at the moment to automate this within
> LedgerSMB so you'll have to use GL entries.
Leah Kubik : d416-585-9971x692 : d416-703-5977 : m416-559-6511
Frauerpower! Co. : www.frauerpower.com : Toronto, ON Canada
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