How to Record Monthly Depreciation on Commercial Kitchen Equipment
Recognizing the monthly wear-and-tear cost of ovens, fridges, and other kitchen assets.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Depreciation Expense (Equipment) | Expense (+) | 250.00 | - |
| Accumulated Depreciation (Equipment) | Contra-Asset (+) | - | 250.00 |
💡 Accountant's Note
A JOD 5,000 oven depreciated over 5 years (straight-line) produces JOD 250/month of depreciation expense.
Practitioner & Systems Framework
💻 ERP Architecture
Use straight-line depreciation for restaurant equipment (cost − residual value) / useful life in months. Refrigeration units typically last 7–10 years; cooking equipment 5–7 years; small wares 2–3 years. Set depreciation to begin in the month the equipment is first put into service. Review useful life estimates annually — if equipment is aging faster than expected, accelerate depreciation.
⚠️ Audit Flags
Auditors reconcile the accumulated depreciation balance to a depreciation schedule and verify the calculation is correct. Fully depreciated assets still in use should be disclosed in the notes — they have a zero book value but still generate revenue. Continuing to depreciate a fully amortized asset overstates depreciation expense.
📄 Required Documentation
Fixed asset register with depreciation schedule, accumulated depreciation roll-forward, useful life review memo, and fully depreciated assets still in service list.
Automate this entry with the JEH Accounting Suite
Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.
No Subscriptions. Own your data.
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.