Fixed Asset Accounting: Depreciation, PFD, and Asset Disposal

Correctly accounting for fixed assets as they lose value over time is a fundamental skill for any accountant, bookkeeper, or business owner. This text-based course guides you through the core principles of depreciation, focusing on the provision for depreciation (PFD) method and asset disposal. You will learn how to maintain accurate asset registers, calculate depreciation using standard methods, and record complex disposal transactions. By the end of this course, you will confidently handle the journal entries and ledger accounts required to track an asset from acquisition to retirement. What you'll learn: Understand the fundamental concepts of depreciation, salvage value, and useful life; Calculate depreciation using straight-line and written-down value methods; Maintain the Provision for Depreciation (PFD) account to keep asset historical costs intact; Record asset disposal transactions, including calculating gains or losses on sale; Prepare ledger accounts for assets, accumulated depreciation, and asset disposal; Apply these principles to modern digital fixed asset registers and cloud accounting workflows. The course begins with foundational definitions and basic depreciation methods before advancing to the ledger mechanics of the PFD account and structured asset disposal. Each concept is reinforced with clear written explanations and step-by-step transactional examples. This course is designed for beginners in accounting, business students, and small business owners looking to manage their fixed assets systematically. No prior accounting experience is required. Start reading today to master the financial lifecycle of business assets.