Fixed asset depraciation

Discussion in 'Accounts & Finance' started by Csills73, Sep 16, 2018.

  1. Csills73

    Csills73 UKBF Contributor Free Member

    76 0

    I wonder if someone could help me with the following.

    I’ve come across an account with Motor Vehicle Cost b/f, Motor Vehicle additions in year, Motor Vehicle depreciation b/f, Motor Vehicle depreciation for year.

    In the motor Vehicle depreciation for year the yearly depreciation is posted (each month) for the year. Then the balance c/f to next year. It gets transferred on the first day of the next financial year into the Motor Vehicle Depraciation b/f a/c. Should this b/f amount that is transferred into the Motor Vehicle Depreciation b/f agree to the previous year total depreciation amount? Unfortunately this is not the case. I don’t really know what I should do about it?
    Thank you
    Posted: Sep 16, 2018 By: Csills73 Member since: Oct 1, 2013
  2. Jaydee

    Jaydee UKBF Enthusiast Free Member

    1,023 265
    The day 1 balance in the motor vehicle depreciation b/f account will only agree to the prior year depreciation in year 2.

    In year 3 and subsequently, it will instead agree to the sum of the prior year depreciation add the prior year depreciation b/f accounts.
    Posted: Sep 16, 2018 By: Jaydee Member since: May 27, 2007