Equipment Depreciation Record
The Equipment Depreciation Record is for calculating how much you need to put aside each term for replacing equipment as it wears out, and to record the payments you make.
Check with your school for the precise equipment depreciation standards you should follow, but as a place to start note these points:
As a rule of thumb, set aside 15% of the cost price of a piece of equipment each year, so that after 6-7 years you will have put aside enough money to purchase a replacement.
The Equipment Depreciation Record below should be used:
- Whenever a new piece of equipment is purchased. A new entry should be made for it on the record, and its depreciation payments planned.
- At the start of each school year the term payments for each piece of equipment should be calculated.
- When the end of the term accounts are being prepared the depreciation record should be referred to so that the correct payments can be set aside.
To use the Equipment Depreciation Record:
1. List all items of equipment the canteen owns that are less than 7 years old, in the Item Depreciation column.
2. Write the date you bought each item, and the price the canteen paid.
3. Calculate the amount you should put aside for each item each term. Check with your school for the amount they recommend.
4. Write the total of the term accounts in the Funds This Year, and Funds to Carry Forward (next year) columns.
5. When you start a new page of this template, copy the amount you have put aside in previous years in the Funds Carried Forward column, and write in the term amounts as for previous pages. Stop putting money aside when the funds carried forward from the previous years plus the term amounts for this year reach the equipment’s cost price.
Download the Equipment Depreciation Record template here
Source: Management $ense, Food Sense, 1997.