Question for you -
If I'm reporting for a quarter and I bought a long term asset at the beginning of the quarter for £5000 and the depreciation was £1000 at the end of the quarter.
Would I put down in the income statement that the expense was £1000 for the asset?
And the balance sheet would show £4000 for the asset?
Or does the balance sheet show the full amount of the asset but the income only get charged the depreciation in the period?
Thank you :)