Depreciation - Reversal

Depreciation - Reversal

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Hello All

We have been posting monthly depreciation using manual GL on sage. Now that we have got new asset module and unfortunately, depreciation cannot be backdated in the module. 

In my case, there was an asset entered in March but invoice was for January. So depreciation was calculated from January on our excel sheet and entered it on GL. Is there any way out that i can reverse this depreciation for Jan & Feb from GL accounts.

 

Is this right Journal?

Accumulated Depreciation DR

Depreciation CR 

 

Will this remove the depreciation for 2 months ? but will this also increase balance on the accumulated depreciation account?

Thanks in advance.

Replies (7)

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RLI
By lionofludesch
14th May 2024 18:53

Probably, but I've always hated Sage and used it as little as possible.

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By Paul Crowley
14th May 2024 19:25

'Is this right Journal?

Accumulated Depreciation DR

Depreciation CR

Will this remove the depreciation for 2 months ? but will this also increase balance on the accumulated depreciation account?'

The words do not agree with the journal
Accum Depn should be a credit on the balance sheet.
A dedit should reduce the accumulated total.
If not then the journals to date must be the wrong way around.

Over to you OP

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Replying to Paul Crowley:
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By amirthaa04
14th May 2024 20:15

Okay, original depreciation journal is
Depreciation dr
Acc Depreciation cr

So I thought reversal would be

Acc Depreciation dr
Depreciation cr

Yes, I agree my description was wrong. Sorry.it will reduce acc Depreciation.

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By Paul Crowley
14th May 2024 19:35

For what it is worth,the old fashioned way of writing a journal is

DR account title figure
. ..........CR account title figure

(dots needed because insetting using space bar does not work on here)

The order and the inset means people will see exactly what is going on without needing to read the DR CR bit.

WE never bother with monthly depreciation, accruals or prepayments, we just do them once a year if my staff are bookkeeping for clients.
It reduces so much clutter from the nominal ledger.

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By Bobbo
14th May 2024 20:08

Whilst it may have only been entered into the "asset module" in March, if the item was acquired in January (as you haven't otherwise specified i'll assume that invoice date essentially equals when it was brought into use) then surely it is correct to depreciate it for January and February. Surely you can enter the value of those two month's depreciation as the initial depreciation total in the asset module, the same as you have done presumably for all other fixed assets held at the time the asset module was implemented?

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Replying to Bobbo:
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By amirthaa04
14th May 2024 20:16

For some reason, I am.not able to backdate Depreciation or change figures on asset module

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Replying to amirthaa04:
RLI
By lionofludesch
14th May 2024 21:01

amirthaa04 wrote:

For some reason, I am.not able to backdate Depreciation or change figures on asset module

Mmmm, that's why I hated Sage.

Difficult to correct errors.

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