Construction

Plant Depreciation Allocated to Project WIP

Charging a project with its share of plant depreciation based on machine hours used.

Account NameTypeDebit ($)Credit ($)
Work-in-Progress (WIP — Plant Cost)Asset (+)5,000.00-
Accumulated Depreciation (Plant)Contra-Asset (+)-5,000.00

💡 Accountant's Note

Depreciation of owned plant is allocated to specific projects based on hours of utilization. This ensures each project bears its fair share of the equipment cost.

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