Fixed Assets - EBS (MOSC)

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UK Local Authority Depreciation Accounting

edited Jun 16, 2010 7:49PM in Fixed Assets - EBS (MOSC) 2 commentsAnswered

 Hope I am not being too silly in posting this question?

1) Current entry for depreciation is

Debit Revenue (I&E account)
Credit Fixed Asset Depreciation Reserve.

2) Under the UK Local Authority Accounting regs (document ID 758012.1 there should also be a corresponding neeutralising entry which

Debits Capital Asset Adjustment Account on the balance sheet
Credits General Fund on the I&E account

However the set up for the UK SORP states that the General Fund ledger code must be of type liabilitiy and this is the only type you can pick on the asset category

So the question is how can the credit to the General Fund be achieved if set up only allows a libaility code?

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