Real Estate

Right-of-Use Asset Depreciation

Monthly depreciation of the ROU asset over the shorter of the lease term or the asset's useful life.

Account NameTypeDebit ($)Credit ($)
Depreciation Expense (ROU)Expense (+)4,861.00-
Accumulated Depreciation (ROU)Contra-Asset (+)-4,861.00

💡 Accountant's Note

A JOD 350,000 ROU asset over a 6-year lease is depreciated at JOD 4,861/month. The ROU asset depreciates while the lease liability is reduced by principal payments — these are two separate calculations.

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