Post by MS INYOFU (@theconscience)

ACCOUNTING HINT (TODAY)

Mistake: Forgetting to depreciate assets already in use

Correct: Charge depreciation periodically (monthly or yearly)

Example:
Equipment N1,200,000, 4 years - N300,000 yearly - N25,000 monthly

Entry:
Dr Depreciation Expense
Cr Accumulated Depreciation

Why: Prevents overstated profit and asset value

Do you post depreciation regularly?

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