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Showing posts with the label FA Ledger Entries

Adding Additional Cost to an Existing Fixed Asset

A laptop is purchased at $4,800 on 1 st March 2020. The depreciation method is Straight-line for over 4 years. On 31 March 2020, the depreciation was calculated as: - (Asset Cost/Useful Life)/Monthly Depr. (4800/4)/12=100 Run the Projected Value report to view the calculated future depreciation and book value. On 12 th April 2020, an invoice was posted for upgrading the laptop spec with additional RAM, the invoice amount is $480. 12 Days of depreciation ( from 1/4/2020 to 12/4/2020 ) for the existing asset is calculated as: - (Monthly Depr./30 Days)*Number of Depreciation Days (100/30)*12=40 12 Days of depreciation ( from 1/4/2020 to 12/4/2020 ) for the additional cost on existing asset is calculated as: - (Monthly Depr./30 Days)*Number of Depreciation Days (10/30)*12=4 To account the depreciation for the additional asset cost into the 1 st depreciation in March’20, you will need to select Depr until FA Posting Date and Depr. Acquisition Cost check box together on the Fixed ...