Balance Sheet question
So in the balance sheet , i will put it for example if i am using the straight line method
Assets : 30,000 dollars
Liability : 3,000 Dollars
and for the year after
Assets : 27,000 Dollars
Liability : 3,000 Dollars
Please make this more clear to understand
1 answers ( 0 marked as helpful)
Hey Andrew,
You will not have a liability of 3,000 but a Depreciation expense of 3,000.
It goes to offset the 30,000 in a counter account (you simply write this sum on the opposite of the T-account), so you end up with 27,000.
Hope this helps!
Best,
Ned