Furniture/Fitting Depreciation

This records the annual depreciation charge specifically for Furniture and Fixtures. It normally carries a debit balance, matched by a credit to the accumulated depreciation account (code 0041).

Real-world examples

Restaurant or retail shop fit-out

A restaurant's fit-out — bespoke seating, bar fittings, shop fixtures — cost £60,000 and is depreciated over 8 years, a shorter life than office furniture, reflecting heavier daily use and the likelihood of a refit sooner. That gives £7,500 a year: a debit of £7,500 to 8002 (Furniture/Fitting Depreciation) and a credit of £7,500 to 0041 (accumulated depreciation, Furniture and Fixtures).

Ordinary office-based business

A typical office-based business depreciates its desks, chairs and storage over a longer life — commonly 10 years — because office furniture sees far lighter use and isn't routinely replaced for cosmetic reasons. £3,000 of furniture depreciated over 10 years gives a £300 annual charge: a debit of £300 to 8002 and a credit of £300 to 0041. The balance here tends to be small and stable year to year for most non-retail businesses.

Commonly confused with

Because code 8001 (Plant/Machinery Depreciation) sits right next to this one in Overheads & Depreciation, it's a common mis-posting target. Code 8002 is specifically for furniture/fitting depreciation, while 8001 covers plant/machinery depreciation — similar in nature, but keeping them separate is what makes the overheads & depreciation section of your management accounts meaningful rather than a single lumped total.

What a mis-posting here costs you

An error posting to Furniture/Fitting Depreciation won't change total overhead spend, but it will distort the overheads breakdown that's usually reviewed line by line each month to spot cost creep.

Other codes in Overheads & Depreciation