A dilapidation provision is a provision to recognise the cost of returning a property or asset to its original state at the start of the lease.
The journal is recognised when there is a change to the provided amount, for example when a property is assessed and the cost to return to its original state is higher than the currently provided amount.
Entries marked with (P&L) should be posted to a profit or loss code. All others are posted to balance sheet codes.
DR Dilapidation cost (P&L);
CR Dilapidation provision