East Bay Business Daily

How do I account for depreciation of fixed assets in subsequent years?

I am using the straight line method and have accounted for the depreciation in the profit and loss account as well as the balance sheet, however, it still leaves my balance sheet unequal. I think it has something to do with the cash flow forecast. Do I have to list the fixed assets as an expense every year?

Public Comments

1. you take the cost of the asset minus the residual value of the asset (salvage value) and divide that by its usefule economic life (years)....(cost of the asset-res. val)/years
2. See if this helps http://www.futureaccountant.com/final-accounts-financial-accounting/
3. I'm not sure about your question, but just check when you list the fixed assets in the balance sheet is: the purchasing value (historical cost)minus any accumulated depreciation (the contra account).Maybe that why you don't equal in your balance sheet.Or maybe you give as some additinal info if this doesn't help.