In accounting, depreciation is the process of transferring the value of fixed assets and intangible assets to the value of manufactured products as they become morally and physically depreciated. Depreciation is calculated monthly regardless of the financial results of the enterprise.
Instructions
Step 1
Determine the depreciation method that will be applied in the enterprise. As a rule, it is indicated when drawing up an act of acceptance and transfer of an object of fixed assets and taking it into account. The linear method, the diminishing balance method, the write-off method in proportion to the volume of production, and the write-off method according to the useful life can be selected.
Step 2
Calculate the amount of depreciation charges for an item of fixed assets using the selected accrual method. It should be noted that methods may differ between groups of homogeneous objects.
Step 3
Reflect in accounting the accrual of depreciation on the credit of account 02 "Depreciation of fixed assets" and the debit of account 20 "Main production", 23 "Auxiliary production" and 26 "General expenses". The choice of the offsetting account is determined by the activity of the enterprise the object belongs to. The posting must be confirmed by an inventory card in the form No. OS-6 and an accounting statement-calculation.
Step 4
Charge depreciation on objects that are leased and do not participate in the activities of the enterprise. In this case, a loan is opened on account 02 and a debit on account 91 "Other income and expenses".
Step 5
Post a second record on the accrual of depreciation if the item of fixed assets was received free of charge or under a gift agreement. In this case, an additional posting is drawn up, in which a credit is opened on account 91 and a debit on account 98.2 "Gratuitous receipts" for the amount of accrued depreciation.
Step 6
Draw up a balance sheet for analytical accounts and reflect the amount of accumulated depreciation for objects that have been removed from the company's balance sheet by transfer, donation, write-off or sale. Open a credit on account 01 "Fixed assets" and a debit on account 02.
