View Full Version : Accounting
 
 mylink
Mar 31, 2012, 06:54 PM
Amortization for the period is 3,644. So its Acc.Amtzn credit and Amtz. Expense Debit.  2  Amtz.on moving truck 500. So its Amtz. Moving truck Debit and Acc Amtz. Moving truck Credit.What is the difference between the two questions why is one a expense and the second question is not.Please help me understand the difference between the two questions, Thanks
 paraclete
Mar 31, 2012, 07:06 PM
The amortisation of the truck is only a part of the total amortisation expense
 pready
Mar 31, 2012, 07:13 PM
A truck would not have amortization.  It will be Depreciation.  Amortization would be used on Intangible Assets. 
 
You will have 2 different journal entries:
Debit Amortization Expense for 3,644
Credit Appropriate Intangible Asset for 3,644 
 
Debit Depreciation Expense for 500
Credit Accumulated Depriation - moving truck for 500