Hello,
I'm trying to complete the annual return for my limited company and I have a question about depreciation.
The only fixed assets that the company has is office equipment, which is £1000.
I have calculated depreciation using the straight line method in a similar way to the example at: How to Depreciate Office Equipment | eHow.com
Using this method, I have calculated that the depreciation is about £95.
However, it looks like it is necessary to write down a depreciation rate used in the notes to the accounts. In my calculation, I simply estimated the useful life and the salvage value of the equipment without thinking about a percentage. However, seeing as the depreciation that I calculated is 9.5% of the original value of the equipment, can I simply say that the depreciation rate is 9.5%?
Thanks
I'm trying to complete the annual return for my limited company and I have a question about depreciation.
The only fixed assets that the company has is office equipment, which is £1000.
I have calculated depreciation using the straight line method in a similar way to the example at: How to Depreciate Office Equipment | eHow.com
Using this method, I have calculated that the depreciation is about £95.
However, it looks like it is necessary to write down a depreciation rate used in the notes to the accounts. In my calculation, I simply estimated the useful life and the salvage value of the equipment without thinking about a percentage. However, seeing as the depreciation that I calculated is 9.5% of the original value of the equipment, can I simply say that the depreciation rate is 9.5%?
Thanks