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?
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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?
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.
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