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Normally where we put depreciation in income statement .is it cost of sales or admin expense .
What’s the asset?
If it’s motor vehicles for sales representatives, it could be in distribution costs
If it’s manufacturing plant, that would be in cost of sales
If it’s directors motor vehicles, it would be in administrative expenses
If it’s computers, that’s probably in administrative
If it’s heavy plant used by a contractor, it’s probably going as an expense in the contract account
Can you see that it’s the nature of the asset that determines the sensible expense heading that would be debited?
OK?
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