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Accounting for non current asset - Coggle Diagram
Accounting for non current asset
Determinationof fixed assets cost
CAPITAL EXPENDITURE
Cost will be charged to the FIXED ASSETS
REVENUE EXPENDITURE
Charges as expense
Types
Fixed Assets
Used in operation of business
Physical substance
Not intend for sale to the customers
Expected to be used for e number in year
Tangible
(Physical assets required to carry businesss)
Land
Vehicles
Equipment
Intangible
(Resources that cannot be hold, touch but the asset could give a future benefit to company)
Brands
Goodwill
Depreciation of fixed assets
DEBIT
Depreciation expense
(Disclose in the Statement of Comprehensive Income
CREDIT
Accumulated Depreciation (Disclose in the Statement of Financial Position
Methods of Depreciation
Straight line method
Yearly Depreciation Expense
(Cost - Salvage Use)
Useful Life