Fixed Assets Accounting (Overview and Best Practice)
๐๐จ ๐ ๐ข๐ฑ๐๐ ๐๐ฌ๐ฌ๐๐ญ๐ฌ ๐๐๐ ๐ข๐ฌ๐ญ๐๐ซ ๐๐จ๐ซ ๐ฒ๐จ๐ฎ๐ซ ๐๐จ๐ฆ๐ฉ๐๐ง๐ฒ ๐๐๐ฌ๐ข๐ฅ๐ฒ
Purpose:
ยท Enable to keep track of the date, quantity, unit price, cost, depreciation, and net book value.
๐๐จ๐ฐ ๐ญ๐จ ๐ซ๐๐๐จ๐ ๐ง๐ข๐ณ๐ ๐ญ๐ก๐ ๐
๐ข๐ฑ๐๐ ๐๐ฌ๐ฌ๐๐ญ๐ฌ?
ยท Useful life more than 1 year.
ยท Cannot be easily converted to cash in the short term.
๐๐จ๐ฐ ๐ญ๐จ ๐๐๐ญ๐๐ซ๐ฆ๐ข๐ง๐ ๐ญ๐ก๐ ๐๐๐ฉ๐ซ๐๐๐ข๐๐ญ๐ข๐จ๐ง?
ยท Normally the percentage of the depreciation is based on the asset's useful life.
ยท Example:
โข Motor vehicle (5 yearsโ useful life - 20%)
โข Air Conditioner (10 yearsโ useful life - 10%)
๐๐ก๐๐ญ ๐ข๐ฌ ๐ญ๐ก๐ ๐ง๐๐ญ ๐๐จ๐จ๐ค ๐ฏ๐๐ฅ๐ฎ๐?
ยท Net Book Value = Asset's Cost - Accumulated Depreciation
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