Fixed Asset Depreciation
by Demas Simeng
1. How do I record this in the books of accounts? 2. What method depreciation can be best used? 3. Can I include depreciation as an expense and accumulated depreciation as an fixed asset in the book of accounts? Please help me outstanding more on this. Looking forward to hear from you. Answer 1. It would be recorded under your church’s fixed asset account. 2. There are several methods of depreciating an asset; however, the simplest and most commonly used is straight line depreciation. See this page for simple instructions on using this method. 3. Accumulated Depreciation is a long-term contra asset account (an asset account with a credit balance) that is reported on the balance sheet. 4. During each accounting period (year, quarter, month, etc.) a portion of the cost of fixed assets is used up. The portion used up is reported as Depreciation Expense on the income statement. See this page for example journal entries using these two depreciation accounts. Hope this helps.  Church Accounting Package www.freechurchaccounting.com
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