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Question asked by Dora
Question

Hi there, My question is that I've got an invoice worth about £3000 for office equipment. I'd like to calc. depreciation however I'm not sure that the items can be depreciated as we bought 58 items (unit price £45). I think due to the low price per item I shouldn't calc. depn. What do you think? Thank you very much

response from Dalila Boinay

Hi Dora,

Assets you purchase for your company, like computers or furniture, will lose their value over time, or in accounting terms ‘depreciate’.

 

During an accounting year, a figure of depreciation will be calculated which represents an approximation of the cost to your business of owning the asset.

 

For example, a computer expected to last three years might be written off on a 33.3% ‘straight line’ basis. This means its entire cost would be written off in equal amounts over a three year cycle.

 

Do not hesitate to speak with one of our advisors should you require any assistance from one of our vetted accountancy firms.

Dalila

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