268 – Accumulated Depreciation - SSLP/Lease or Rental Vehicles

Current Assets

Other

Synopsis

Account 268

Remarks:

A schedule of depreciation should be set up with the advice of competent accounting counsel.  The schedule should be grouped by SSLP, Lease or Rental units.

The schedule should also include the following:

• Vehicle description

• VIN # and stock #

• Date put into service

• Customer name on lease vehicles

• Number of months to be in service

• Cost

• Monthly depreciation

• Accumulated depreciation

When a vehicle is removed from service, debit Account 268 with the accumulated depreciation on the vehicle.  Credit Account 264 with the total inventory cost of the unit, less depreciation.

Any difference between net book value (Account 264 value, less Account 268 value) and appraised value should be debited or credited to Account 809 – Lease & Rental Vehicle Income, or Account 859 – Lease & Rental Vehicle Expense, or Subaru SSLP Income – Account 811, or Subaru SSLP Expense – Account 860.

Note: