283 – Parts & Accessories Equipment

Fixed Assets

 

Synopsis

Account 283

Debits

Credits

  1. The cost of all machinery, permanent tools, equipment acquired, or built (not a permanent part of the building) for use in the Parts & Accessories Department.

  1. The cost of machinery tools, equipment in this account that is sold or otherwise removed.

 

 

Remarks:

Machinery, tools, equipment for the Parts and Accessories Department, whether purchased new or used, should be charged to this account and depreciated over their useful life.

 

This account balance represents the net purchase price, freight, and installation costs of all equipment purchased or built (including lease-purchase arrangements).

 

Service Department equipment should not be charged to this account.

 

Equipment for use in the Parts and Accessories Department includes such items as parts bins and racks, show cases and counters, cabinet and containers, fork lift, etc.

 

All parts and accessories equipment acquired should be listed in detail on fixed asset inventory and depreciation record.  The accumulated total in the cost column should agree with the balance in this account each month-end.

 

Repairs to items in this account should be charged directly to the appropriate expense account as they occur.

 

When an item included in this account is sold, the total cost should be credited to this account, and the reciprocal accumulated depreciation account should be relieved.  Any gain on the sale should be credited to Additions to Income – Other (Account 805).  Any loss on the sale should be debited to Deductions to Income – Other (Account 855).

 

Note: