91 – Depreciation – Other Than Buildings & Improvements

Overhead Expenses

 

Synopsis

Account 91

Debits

Credits

  1. The monthly portion of depreciation of all equipment, furniture, and signs used in the retailer activities, and recorded in Furniture, Signs, and Equipment.

 

 

 

Remarks:

Rates of depreciation vary according to the type of equipment, use, and other factors.  Tax counsel should be obtained before adopting depreciation methods and rates.  Governmental tax authorities issue guidelines containing allowable depreciation methods and rates.

Depreciation records should be properly detailed and maintained.

Each item of expense should be distributed to the department using the equipment.