Accountancy

Although capital assets are by definition " assets intended to be used in a sustainable manner for the business of the enterprise  ", it may happen that a company decides to sell it. This sale, which is generally carried out for economic reasons, is subject to a special accounting treatment Because the date is a key element for an accounting entry , it is important to know when to register an asset transfer . Generally, it is recognized on the day of the transfer of the control of the property , ie the day of transfer of ownership between the two parties. However, special conditions may change the situation. This is the case, for example, where the contract of sale includes a retention of title clause or a suspensive condition. In these specific situations, the disposal of the fixed asset can be recorded on the effective date of delivery to the buyer. The accounting entries for a disposal of fixed assets are rather complex . It must be said that the recording will b...

Calculate the annual depreciation of an asset is not very complex since, For best accountancy training Best school of accountancy In Lahore . It is sufficient to apply the following formula: Annual amortization = depreciable base X depreciation rate In this formula, the depreciable basis corresponds to the gross value (purchase value excluding VAT + ancillary costs) to which the residual value will be deducted . The depreciation rate is obtained from the formula: 1 / duration of use . In France, the General Tax Code (CGI) determines the tax length of the depreciation of the various assets. With all of this information, it is possible to create an amortization table including the depreciable base, the calculation of the annuity by taking into account the pro rata temporis, the accumulated depreciation and the net value of the asset. Accounting for a straight-line depreciation Once you have calculated the straight-line depreciation of an asset, it should not be omitted to...

Amortization is an accounting technique used to take into account the loss of value of a good because of its use, time or technical evolutions. There are several methods to calculate it including linear depreciation. What is linear depreciation? Linear depreciation is a method of calculating depreciation which is based on a simple consideration: a property depreciates consistently during its use by the company . In other words, depreciation annuities will be constant irrespective of the actual use of the property by the enterprise. Easy to set up and do not involve annual calculations to determine depreciation, this method of accounting is sometimes decried in the sense that it would not help to give a true picture of a company at a time. While the vast majority of property, plant and equipment (excluding land and works of art) are depreciable, some intangible assets such as software or patents are also used. However, straight-line depreciation is mandatory only when amorti...

It is common in the life of a company that it wishes to acquire a company vehicle. For best accountancy training Best school of accountancy In Lahore . Depending on the nature of the latter - passenger car or utility vehicle - the accounting for this acquisition may have specific features to be discovered in this article. Before we look at the accounting for the purchase of a company vehicle, we still need to know what we are talking about. Thus, a company vehicle is simply that of which the owner or lessee is a commercial company. It can be a commercial vehicle or a passenger vehicle. For the second option, however, the tax administration limits the depreciation charge to € 18,300, which estimates that a company does not need luxurious vehicles. For a company, a company vehicle becomes an asset that can be depreciated over several financial years or for only 12 months (in the case of own vehicles). The purchase price of a company vehicle To accurately account for the pur...