@@tonyenemieboka903 thanks for this great question, to be honest it maybe out of my area, as i am not accountant. If the vehicle has been sold there is nothing to depreciate and there could be tax implications because the sale is like income to the business, thus effects profit and thus tax. Hope this helps, probably best to check with your accountant.
Thanks for sharing. This was exactly I was looking for. I have a question: If we reduce $30,000 from PPE on asset side, how are we going to balance it with liabilities?
@@bradflynnofficial thanks for the reply. For depreciation. Not sure, but I saw at many places "accumulated depreciation" under assets. Is this the way?
It can be, remember accounting is double entry based. So if you depreciate an Assett the ppe goes down by that amount and an expense is added to the p&l as depreciation. Or, if the asset is sold, then ppe goes down by that amount but cash goes up to keep the balance sheet balanced.
Great question, when it comes to the sale of a business, like the dale of anything, ultimately it comes down to a negotiation between parties, regardless of what the financial statements say.
Nobody can explain it more clearly than this. Thanks
Thank you so much for the kind words, it means a lot!
Great job sir. Hello sir. Is it possible to calculate depreciation for a vehicle that has only the value of the asset and the forced sale value
@@tonyenemieboka903 thanks for this great question, to be honest it maybe out of my area, as i am not accountant. If the vehicle has been sold there is nothing to depreciate and there could be tax implications because the sale is like income to the business, thus effects profit and thus tax. Hope this helps, probably best to check with your accountant.
Thank you, very nicely explained!!👍
You are welcome Savio, thanks for the feedback🙏
Very nicely explained, helped me grasp the concept alot faster than out of a texbook.
Thanks Adam 💪
What an explanation..god level
Good explanation, thanks!
Perfect, thank you....🤜🤛
You’re most welcome 🙏
This simplified this for me pretty well. Thanks
Fantastic BreAuna, thanks for the feedback
thank you I ama student and this has helped a lot
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Thanks for sharing. This was exactly I was looking for. I have a question:
If we reduce $30,000 from PPE on asset side, how are we going to balance it with liabilities?
Need some more info, how are you reducing PPE? Depreciation, selling it or some other way?
@@bradflynnofficial thanks for the reply. For depreciation.
Not sure, but I saw at many places "accumulated depreciation" under assets. Is this the way?
It can be, remember accounting is double entry based. So if you depreciate an Assett the ppe goes down by that amount and an expense is added to the p&l as depreciation. Or, if the asset is sold, then ppe goes down by that amount but cash goes up to keep the balance sheet balanced.
Equity goes down
Very well explained, thanks!
🙏
So we record it as depreciation for motor vehicle under expenses?
Best to let your accountant do depreciation entries as there are legal limits and requirements.
i love you
Instead of an expense coming out of Cash as, say, a check you write, it is coming out of the Asset as depreciation.
That’s correct and appears as an expense on P&L which reduces profit and tax liability, without an actual cash movement.
@@bradflynnofficial 👍 Thanks
My question is around if you depreciate the asset by 100%. Can you still value it at 100% of its original cost in assets if you sell the business?
Great question, when it comes to the sale of a business, like the dale of anything, ultimately it comes down to a negotiation between parties, regardless of what the financial statements say.