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hello today Im going to talk about depreciation and disposal of assets which can sometimes be a tricky area just to get to get your head around so lets assume for example that this company has a vehicle which had purchased for twenty thousand points okay so it paid cash it bought the variant comes with twenty thousand points and it intends to hold this vehicle and for four years okay so its going to hold it for four years and its going to be worth scrap at the end okay so lets assume that theres no no value left of this very company in the four years so it purchased it for twenty thousand its going to hold it for four sell it for scrap so that gives if we use straight-line depreciation that gives five thousand pounds per year so nice simple straightforward figures okay so in the Isetta claim theres going to be a vehicle of twenty thousand points and a debit side so the credited bank with paid cash for it and theres the bearing of sitting as an asset okay when it was purchased
