UNIVERSITY OF DAR ES SALAAM
SCHOOL OF BUSINESS
GROUP MEMBERS
NAME
REGISTRATION NUMBER
MUSHI COLLINS AMON
2019-04-08624
MWAIPOPO RIZIKI M
2019-04-08821
TEMBA COLMAN APOLNARY
2019-04-12487
AUGUSTINO LUCIA G
2019-04-00583
Fixed asset management system.
Is an accounting process that seeks to track fixed asset for
the purpose of financial accounting, preventive
maintenance and theft deterrence .it enables an
organization to track and maintain its physical asset.
 Asset types include vehicles, furniture, machines and
computers
 Organizations faces significant challenges to track the
location, quantity, condition, maintenance and
depreciation status of their fixed asset.
 A popular approach to tracking fixed assets is by using
serial numbered asset tags, which are labels often with
bar codes for easy and accurate reading
Fixed asset register
Is an accounting tool used to keep lists of various assets that
a business owns and is used to summarize both accounting
and depreciation expenses.

The fixed asset register will typically include details about
the assets such as what it is, where it is located and
purchases price. It includes details on all assets such as
condition, location and the owner

It may take the form of a simple excel sheet or be
integrated with accounting software
It is important that the fixed assets must be recorded in the
fixed asset register because it is the proper way to keep
records and to maintain the proper control.
Purpose of fixed asset register

The main purpose of fixed asset register is to enable the
accurate record and maintain both financial and non
financial information pertaining to each assets and to be
easy to identify and verify an asset when required
Contents of a fixed asset register

the fixed asset register will typically contain the following
details about assets
•
What it is
•
Where it is located
•
Purchase price
•
Date of purchase
•
Life of asset within the business
•
Depreciated value of the asset after a particular point in
time
•
Expected value at the end of its useful life
Coding techniques
Are the techniques used in assignment of numbers or letters
to items to classify and organize them.

Through coding techniques an organization can represent
large amounts of complex information that would
otherwise be unmanageable
Types of coding techniques.
Sequential coding technique.
Unique identifiers are assigned to data items in a sequence.
Numbers or letters are assigned in a specific order. A
sequence code contains no additional information other than
an indication of order of entry into a system

Items are numbered consecutively to ensure that there
will be no gaps in the sequence, this enable the user to
account for all items.
 Block code.
Refers to the technique of adding extra bits to a digital
word in order to improve the reliability of transmission.
The designer of codes reserves certain numbers in the
sequence which will later used for certain classification.
o
Continued
The great advantage of block codes is that it allows future
expansion of the chart of accounts.

Alphabetical coding technique.
This uses alphabets to present information.it is used mostly
with numbers

Mnemonic codes.
Represents information or data item with a combination of
letters and numbers. The design team chooses the
combination so that clerks can more easily remember the
associated data items.
Suitable codes
We are going to use group code technique to capture all
information of fixed asset.

Because group codes will enable us to add or delete items
without affecting others. Also we can assign meaning to
fixed assets without affecting other items
Codes description
Account category
block
Land and buildings
1000-1999
Plant and equipment
2000-2999
Computer equipment
3000-3999
Office equipment
4000-4999
Furniture and fixtures
5000-5999
Motor vehicles
6000-6999
continued
Code location
region
101
Dar es salaam
102
Arusha
103
Dodoma
104
Mwanza
Example
Id
Description
6000-102-6001
Toyota FG 1.8 fork fit
2000-103-2004
Aquino T7 CNC machine
4000-101-4010
Office chair
3000-104-3001
Microsoft office 2010
Characteristics of a better coding system.



Flexibility. A better coding system should be flexible. it
should be adaptable to the changes occurring in the
business. To accomplish this the code designer should
create codes which will allow him to incorporate changes
in the business overtime.
Simple as possible. A good coding system should be simple
in order to facilitate easy memorization of coding
categories. Code designer should not over complicate by
including much details.
Precision. All codes should be unique in order for a person
to be able to differentiate various types of assets and
information pertaining to that asset
continued

Comprehensive
coding technique contain a lot of information concerning a
particular accounting information, for example a code can
be written as 200-300, this may indicate that there is a lot
of accounting information contained in the range of 200-300

Brevity, a coding technique involve the systematically
process of summarizing accounting information in a simple
and easy way which can be understood easily by the user
of accounting information. For example an accountant can
write a code as 1999-2006 to indicate total fixed asset
owned by the company