Office Furniture

Code: 1215
👁 Views: 98

Account Information

Financial Statement Statement of Financial Position
Normal Balance Debit

Definition

Cost of office furniture and equipment

Note: This account may be broken down into sub-ledgers as needed (e.g., customer/supplier/bank names or branches).

Common Journal Entries

Purchased new office furniture

Dr. Office Furniture
Cr. Cash in Hand

Recorded furniture depreciation

Dr. Depreciation Expense
Cr. Accumulated Depreciation Furniture

Disposed of old furniture

Dr. Accumulated Depreciation
Dr. Loss on Disposal
Cr. Office Furniture

Revaluation of office furniture

Dr. Office Furniture
Cr. Revaluation Surplus

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 16 Property, Plant and Equipment
US GAAP ASC 360 Property, Plant and Equipment

❓ Frequently Asked Questions

Q: What is the difference between office furniture/equipment and office supplies?

A: Office furniture and equipment are fixed assets (desks, chairs, cabinets, computers) that are capitalized and depreciated over their useful life. Office supplies (such as paper, pens, ink) are periodic expenses that are fully expensed when purchased or consumed.

Q: What is the useful life of office furniture?

A: The useful life of office furniture typically ranges from 5 to 10 years depending on build quality and intensity of use. Electronic equipment (e.g., computers) may have a shorter useful life (3-5 years).

Q: How is office furniture depreciation recorded?

A: Office furniture depreciation is recorded with the entry: Dr. Depreciation Expense, Cr. Accumulated Depreciation - Office Furniture. Accumulated depreciation appears as a deduction from the furniture account on the balance sheet.