The calculation of the residual value

calculating the residual value of a good is very simple since it will be necessary to withdraw the accumulated depreciation amount at the purchase price .

Obviously, in order to do this, the accounting firm will have to have depreciation schedules in order to know what rate of depreciation to apply to each asset since not all of them lose value at the same rate.

It is considered, for example, that a bedding does not lose value after being used one year while a computer loses 20% or a video game 40% after the same duration of use.

Accounting for a real estate complex

The accounting writing of the purchase of a property complex involves to properly break it down into different categories. The purchase of the land will have to be accounted for on the one hand and the purchase of the building on the other, and the additional costs will have to be taken into account. A tedious task ...

Accounting for land

When acquiring a real estate complex, a company must be able to identify which part of the purchase price actually concerns the acquisition of the land since this value will not be depreciable as opposed to the construction .

If the notarial deed does not give any indication on this subject, the value of the land can be estimated by calling on a real estate expert or calculated by reference to the market price of similar land.

This amount will be recorded in a subdivision of the "211 - Land" account which will generally be "  2115 - Built Land  ".