Depreciation Journal Entry-Annual or Monthly??

[Joojo]

Hello I know that the "Depreciation" Journal Entry is normally done at closing once in a year hence the name"annual depreciation"

Could we pass a general entry for depreciation at the end of 1 month?

Meaning are we allowed to spread depreciation over 12 months?

Thanks

 

[Demos]

Hello,
In both companies I worked , we was making depreciation entries once per month.
We was printing the Fixed Asset Ledgers per month, reconcile them with the invoices and then post the transactions

 

[davidotieno]

Hi,

Depreciation can be done at any time interval as long as its within your company policy.
If your company policy provides for 20% depreciation per annum, and you are preparing monthly management accounts, you can do monthly depreciation of 20% pa divided by 12 months of the year for each month of your monthly accounts. At the end of the year it will remain 20% pa depreciation amount of that asset.