My previous business partner / accountant entered into the opening balance adjustments for year end 31/03/2016 some office equipment and office equipment depreciation. It’s going back a bit but I think this was entered/calculated manually. I can’t even work out now what this was based against.
Anyway, long story short… this figure has shown on following years. I believe this was for a laptop used in the business and would believe this now to be 100% depreciated. How do I get this to reflect in following years? Do I just add opening balance adjustments for following years with the office equipment depreciation showing at a lower amount the following years?
Each year since 2016 you should have entered a depreciation journal at year end.
Usually the depreciation is 25% of the reducing value of the laptop each year so it never fully depreciates.
Tell me what the balance sheet shows for the asset and it’s depreciation including the nominal codes used and I’ll produce a typical annual journal entry for you.
Below shows the journal entries covering 3 years worth of depreciation.
The two missing years plus the current 18-19 year ending 31st March 2019.
It will bring the assets value up to date, leaving a current years book value of £47 on the balance sheet
Usually each year needs two journal entries to depreciated the value of each asset class, one entry for the profit and loss account and a balancing entry for the balance sheet
