Post by MS INYOFU (@theconscience)

ACCOUNTING HINT (TODAY)

Mistake: Posting assets to Fixed Assets before delivery (causes early depreciation)

Correct: Hold them as Advance or Asset in Transit until received

Example:
Pay N5m - Dr Advance to Supplier, Cr Bank
Invoice - Dr Asset in Transit, Cr Supplier
Delivery - Dr Fixed Asset

Why: Depreciation starts only when asset is ready for use

Do you delay asset recognition until delivery?

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