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  • Apr 30, 2009, 07:06 PM
    ctcgirl
    Capitalizing Expenses
    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?
  • May 1, 2009, 12:17 AM
    ROLCAM

    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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