Accumulated Depreciation

[chris4503]

Good evening all,

Last fin year, due to the Aus Government 100% instant tax right off, we 100% depreciated the company vehicles purchased over the year, or should i say the accountant did

Due to difficult business circumstances we no longer have the said accountant and are trying to do things on our own this year,

The balance sheet still shows the negative accumulated depreciation for this year. I would assume that this was claimed last year and cant have an effect on this year, does this need to be journalled out or ????

Your input wise community is appreciated

Thanks

[gavin12345]

Hi @chris4503 

This is normal, the Vehicle account should show a positive, say $20k and the vehicle accumm depn should show negative (-$20k), net effect on balance sheet is nil. Until the vehicle is sold both entries should stay on the Balance Sheet. Neither affect the current P&L.

Regards

Gavin