Asset Retirement in Same Period of addition
in Assets
Summary: Currently we have a scenario where we add an asset with DPIS as 2018 and Life of this asset is 3 years, we added this asset in April 2026, where system creates a catch-up depreciation. The Journal Entries for Addition is as seen below:
Class | Accounted (THB) |
|
|---|---|---|
| Debit | Credit |
Cost | 21,112.53 | |
Depreciation Expense | 21,111.53 | |
Cost clearing | 21,112.53 | |
Accumulated Depreciation | 21,111.53 |
Accounting Date is 1 April 2026
Net Book Value is 1.00
We then did a Full Retirement in July Period, but the Retirement Date is set as 29 April 2026 (backdated retirement) where we have this journal entry:
Class | Accounted (THB) |
|
|---|---|---|
| Debit | Credit |
NBV Retired | 21,112.53 | |
Accumulated Depreciation | 21,111.53 | |
Proceeds of Sale Clearing |
0