Question

Hi i'm doing general journal entries for accounting work.

What does the following mean

Regardless of purchase date, the policy of the company is ti depreciate new assets for 15 days in the month of purchase

Assume I have all relevant information to make the necessary calculations, however the statement itself confuses me and i am not sure what that would require me to do when writing general journal entries

Answer 1

Hi,

The statement "Regardless of purchase date, the policy of the company is ti depreciate new assets for 15 days in the month of purchase" means depreciatio of 15 days only applicable irrspective of purchase date (even it may be 1st date of the month or last day of the month).

This statement is useful for calculation of depreciation amount on new purchased assets, It doesnot require any special general journal entries or description.

Please use this information only to calculate the depreciation amount and no need any general journal entries.