Post by MS INYOFU (@theconscience)

ACCOUNTING HINT

Mistake: Charging full asset cost as expense immediately

Correct: Spread cost using **depreciation** over useful life

Example:
Machine N1,200,000, life 4 yrs
Annual depreciation = N300,000

Entry:
Dr Depreciation Expense
Cr Accumulated Depreciation

Why: Matches cost with period of use and shows true profit

Do you depreciate your assets correctly?

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