Answer in Accounting for Phumudzo #103245
March 18th, 2023
The seller must accrue depreciation for September, and the buyer will already accrue for October. Accrued depreciation amount = Initial amount of fixed asset value minus residual value of fixed asset. Typically, the useful life of office equipment is 1 year.Therefore, in this case, accumulated depreciation will include September 2019.
When a fixed asset is sold, accumulated depreciation, residual value and initial cost are written off.