UNIKBOK / Swedish bookkeeping examples / Equipment and depreciationPå svenska
How to book equipment and depreciation
You buy a machine for SEK 1,000 including VAT and depreciate it over 5 years. The amount is only an example: in practice, equipment worth more than half a price base amount (prisbasbelopp) is capitalised.
How to book it
Both methods – purchaseBoth methods
| Account | Account name | Debit | Credit |
|---|---|---|---|
| 1220 | Inventarier och verktyg (Equipment and tools) | 800 | |
| 2641 | Debiterad ingående moms (Input VAT) | 200 | |
| 1930 | Företagskonto (Business bank account) | 1,000 | |
| Total | 1,000 | 1,000 |
Both methods – annual depreciation (20%)Both methods
| Account | Account name | Debit | Credit |
|---|---|---|---|
| 7832 | Avskrivningar på inventarier och verktyg (Depreciation of equipment and tools) | 160 | |
| 1229 | Ackumulerade avskrivningar på inventarier (Accumulated depreciation on equipment) | 160 | |
| Total | 160 | 160 |
Common mistakes
- Depreciating the amount including VAT. Depreciation is based on the cost excluding deductible VAT.
The UNIKBOK accounting software has a ready-made template for equipment and depreciation. Take a photo of the document, and the software suggests the accounts, VAT and journal entry for you.