Reclassification of asset impacts depreciation accounts
We reclassified an asset wrongly in Period 1. The original life of asset was 5 years and by mistake we reclassified the asset to a category with 10 years. On noticing the same we took corrective actions and again moved the asset from 10 year category to its original 5 year category in the same period i.e. (Period 1). The system passed 2 ACCOUNTING ENTRIES one for moving the Asset Cost and Accumulated depreciation to the new category and second Adjustment since the life also changed from 5 years to 10 years. When we analyzed the accounting entries all the