depreciation and how to make balance sheet according to local government

张韡武 zhangweiwu at realss.com
Fri Jan 11 22:41:30 EST 2008


Dear all. I read the conception guide and chapters about depreciation.
The guide suggested me to use following account hierarchy for
depreciation:

      * Assets
              * Fixed Assets
                      * Blade Server
                              * Original Cost
                              * Accumulated depreciation 
                      * Color Laserjet
                              * Original Cost
                              * Accumulated depreciation
      * Equity
      * Expenses
              * Depreciation

And the generated balance sheet is according to this hierarchy too.
However in our local tax office we were asked to fill balance sheet the
fixed assets section in this way (our accounting period is per quarter)

Total Origianl Cost at end of last quarter
                                                             ¥59,783.70
Total Accumulated depreciation at end of last quarter
                                                             ¥16,482.18
Total Net book value at end of last quarter
                                                             ¥43,301.52
Total Original Cost at end of this quarter
                                                             ¥64,782.70
Total Accumulated depreciation at end of this quarter
                                                             ¥28,395.19
Total Net book value at end of this quarter
                                                             ¥36,387.51

So in order to fill the tax forms, we have to do a lot of suming, sum up
all Original costs and all Accumulated depreciation, manually. This is
work I wish to avoid (we got dozens of fixed assets and do it 4 times a
year). So, I wish to organize account hierarchy in this way: 

Assets
              * Fixed Assets
                      * Original Cost
                              * Blade Server
                              * Color Laserjet
                      * Accumulated depreciation 
                              * Blade Server
                              * Color Laserjet
      * Equity
      * Expenses
              * Depreciation

My question is: if I use this alternative hierarchy, does it have any
other side-effect? I do this for getting a balance sheet according to
tax office, but do I broke other feature or make other calculation more
difficult at meantime? I am a new user anyway.

Thanks a lot for hints and suggestions in advance!	

For your information: in order to enter the balance sheet by the local
tax office, we are REQUIRED to use Microsoft Internet Explorer because
that form was made up with ActiveX (although Javascript certainly can do
it as good), in other words, local tax office ASKs us to use Windows.
Few people complains about it yet because of low adoption rate of both
Firefox and Linux. I hate this but things would not change if I am the
only one complains.

Best regards
Zhang Weiwu



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