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    pascal25 Posts: 1, Reputation: 1
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    #1

    Apr 22, 2009, 06:24 AM
    What is depreciation ?
    A motor vehicle bought 20th June 2007 for a price of 8500 usd what will be the depriciation today to be charged to profit and loss account
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    pready Posts: 3,197, Reputation: 207
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    #2

    Apr 22, 2009, 06:48 AM

    The answer depends on the Depreciation method used, estimated useful life of the asset, and the salvage value.

    If this for homework, your problem will give you the inffomation that is needed to compute the Depreciation Expense.

    The journal entry to record Depreciation Expense will be:
    Debit Depreciation Expense for the Amount (Expense Account)
    Credit Accumulated Depreciation - PP&E for the amount (Contra Asset Account)
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