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  • Mar 31, 2012, 06:54 PM
    mylink
    Accounting
    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
  • Mar 31, 2012, 07:06 PM
    paraclete
    The amortisation of the truck is only a part of the total amortisation expense
  • Mar 31, 2012, 07:13 PM
    pready
    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

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