Depreciation in the operation of an enterprise is used to partially transfer the current balance and other assets to the cost of products in case of their moral and physical wear and tear. These transactions must be reflected in the accounting records.
Instructions
Step 1
Select the method by which the enterprise will be depreciated. Usually it is specified when an act of acceptance of an object of fixed assets is drawn up. You can set straight-line depreciation, declining balance depreciation, prorated depreciation, or useful life. In accordance with the selected accrual method, calculate the depreciation charges for the item of fixed assets. Please note that depending on the groups of homogeneous objects, the methods may differ from each other. You can learn more about the rules for amortization from Russian accounting standards.
Step 2
Reflect the accrued depreciation amount in accounting. It is attributed to the credit of account 02 ("Depreciation of fixed assets") and the debit of production accounts 20, 23 and 26. Select the appropriate offsetting account, depending on which activities of the company the object belongs to. Confirm the posting with an inventory card (form No. OS-6) and an accounting statement.
Step 3
If you need to accrue depreciation on objects that are leased and not involved in the activities of the enterprise, open a credit account 02 and a debit account 91 ("Other income and expenses"). Upon receipt of an object of fixed assets free of charge or under a donation agreement, an additional entry must be made on the accrual of depreciation. Make an additional posting by opening a debit on account 98.2 and a credit on account 91 ("Gratuitous receipts") for the amount of depreciation charged.
Step 4
Reflect in the balance sheet through analytical accounts the amount of depreciation for objects that were removed from the balance sheet of the enterprise during the transfer, donation, write-off or sale. Open a debit for account 02 and a credit for account 01 ("Fixed assets").
