Beruflich Dokumente
Kultur Dokumente
Transactions Journal
Purchase (ex: Machines) Machines xxx
Cash xxx
Installment (ex: Machines) Machines xxx
Cash xxx
Financing Loan xxx
Purchase annuity (lump sum) Machines xxx
Building xxx
Differed interest expense xxx
Cash xxx
Annuity payable xxx
Interest payable xxx
Self building asset Building xxx
Material expenses xxx
Direct labor expense xxx
Overhead expenses xxx
Interest expense xxx
Issuance Stocks Machines xxx
Capital Stock xxx
Additional Paid in Capital xxx
Exchange with others assets Machines A xxx
Accumulation depreciation- Machines B xxx
Machines B xxx
Cash xxx
Donation Machines xxx
Donation Capital xxx
Kas xxx
DEPRECIATION
1. Activity methods
2. Straight-line methods
3. Decreasing charge methods (accelerated)
a) Sum-of-the years-digits
b) Declining balance method
4. Special Depreciation Method
a) Group and composite methods
b) Hybrid or combination methods
DATE USED TO ILLUSTRATE DEPRECIATION METHODS
1) Activity Method
(Cost less residual ) x Hours this year
Depreciation charge = ---------------------------------------------------
Total estimated hours
2) Straight-Line Method
15 450.000.000
Continue
Notes:
(2) = Rp. 500.000.000 Rp. 50.000.000 = Rp. 450.000.000
Continue ..
Notes:
(3) 2 x the straight line rate = 2 x 20% *
* Rp. 90.000.000/Rp.450.000.000 = 20%
(4) = (2) x (3)
A. Revenue expenditure
Cost that benefit only the current period or
costs incurred for normal maintenance and
repairs
It is debited to expense account
Example:
maintenance expense, repainting building,
small repairs, etc
B. Capital Expenditure
Costs of acquiring fixed asset, adding to fixed
asset, improving fixed asset, or extending a
fixed assets useful life
It debited to asset account or related to
accumulated depreciation account
Types of capital expenditure
1) additions
2) betterments
3) extraordinary repairs
Disposal of Fixed Assets
The entry to record the disposal of fixed asset removes the cost
of the asset and it accumulated depreciation from the account
B. Sold below book value for Rp. 1.000.000. Loss Rp. 1.250.000
Illustration
Assume the folllowing exchange:
Book value old equipment Rp. 14.000.000
List price of new equipment Rp. 50.000.000
A trade in allowance of
the old equipment Rp. 15.000.000
a. Method One:
List price Rp. 5.000.000
Trade-in allowance on old equipment Rp. 1.100.000
Book Value of old equipment Rp. 800.000
Unrecognized gain on exchange ( Rp, 300.000)
Cost of new equipment Rp. 4.700.000
b. Method Two
Book Value of old equipment Rp. 800.000
Cash paid at date exchange Rp. 3.900.000
Cost of new equipment Rp. 4.700.000
Journal entry to record new equipment
Date Description Reff. Debit Credit
2008
June 19 Accumulated Depreciation-Equipment 3.200.000
Equipment (New) 4.700.000
Equipment (old) 4.000.000
Cash 3.900.000
Exchanging Similar Assets (Losses)
To illustrate as follows
Similar New equipment
List price Rp. 10.000.000
Trade-in allowance on old equipment Rp. 2.000.000
Cash paid at Sept, date of exchange Rp. 8.000.000
(in rupias)
Date Depreciation Book Value
No. Code Type of Assets acquired Cost Acc.Dep.2007 2008 Acc.Dep.2008 2008
Vehicles
1 1311 Box Car 03/02/2003 72.000.000 34.800.000 1.740.000 36.540.000 35.460.000
2 1312 Trucks 04/04/2003 84.000.000 39.900.000 19.950.000 59.850.000 24.150.000
Total 156.000.000 74.700.000 21.690.000 96.390.000 59.610.000
Machines
1 1321 Genzet 05/01/2003 20.000.000 9.333.334 4.666.667 14.000.001 5.999.999
2 1322 Generator 04/10/2004 80.000.000 29.333.334 14.666.667 44.000.001 35.999.999
3 1323 Diesel 02/05/2003 200.000.000 98.333.334 49.166.667 147.500.001 52.499.999
Total 300.000.000 137.000.002 68.500.001 205.500.003 94.499.997
Equipment
1 1331 Computer 07/07/2004 34.000.000 17.850.000 8.925.000 26.775.000 7.225.000
2 1332 Of f ice Furniture 07/02/2004 160.000.000 84.000.000 42.000.000 126.000.000 34.000.000
3 1333 Of f ice Equipment 03/02/2003 60.000.000 43.500.000 2.175.000 45.675.000 14.325.000
Total 254.000.000 145.350.000 53.100.000 198.450.000 55.550.000
Buildings
1 1341 Warehouse 01/02/2003 150.000.000 37.500.000 20.000.000 57.500.000 92.500.000
2 1342 Of f ice Building 01/02/2003 90.000.000 21.375.000 12.500.000 33.875.000 56.125.000
3 1343 Plant A 01/02/2003 240.000.000 60.000.000 10.000.000 70.000.000 170.000.000
4 1344 Plant B 04/02/2003 120.000.000 30.000.000 71.250.000 101.250.000 18.750.000
Total 600.000.000 148.875.000 113.750.000 262.625.000 337.375.000