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ctcgirl
Apr 30, 2009, 07:06 PM
I have recorded all my expenses for the year, but would like to make some of them fixed assets. We had a pool installed and need to capitalize it. What do I put for the cost and how do figure out the depreciation value?

ROLCAM
May 1, 2009, 12:17 AM
DEBIT Pool Account
Credit All Expense Accounts

Being capitalising the expenses incurred in building the pool.

The depreciation starts from the capitalisation
date.
Assume the pool has a lifetime of 10 years.
On a straight line basis you depreciate the
pool at the rate of 10% per annum.