How full disposals affect Daily depreciation schedules—Fixed Assets Management
For assets depreciating under the Daily method, full disposals require a final depreciation calculation through the disposal date. The depreciation schedule updates to account for the partial depreciation in the month of disposal. A new entry is added to the depreciation schedule and depreciation expense journal entry is created for that entry.
For example, an asset that's disposed on October 10th has 10 days of accumulated depreciation for the month of October. The depreciation schedule updates with an additional entry on October 10th for this partial depreciation. The original entry for October is adjusted to reflect the correct remaining depreciation amount for October, which was canceled.
|
Period |
Scheduled posting date | Actual posting date |
Depreciation amount ($) |
State |
|---|---|---|---|---|
| 1 | September 30th | September 30th | 123.28 | Posted |
| 2 | October 10th | October 10th | 41.09 | Posted |
| 2 | October 31st | -- | 86.30 | Canceled |
| 3 | November 30th | -- | 123.28 | Canceled |
| 4 | December 31st | -- | 127.40 | Canceled |
