To record depreciation
If you haven't already read the Nominal Journal Entries Overview, see Recording depreciation for more information.
The Record Journal Entry windowshould be displayed.
- Create one new asset account for each of the accounts you depreciate. Add the words "Accumulated Depreciation" at the end of each new account's name. Give the new accounts numbers that directly follow their corresponding asset accounts. See Creating accounts for more information.
- Next, create a new expense account called "Depreciation Expense."
- Make Nominal Journal entries to credit the Accumulated Depreciation asset accounts and debit the Depreciation Expense account. The asset accounts will always have a negative balance to show a reduction in the value of the depreciable assets.
See also:
To store the transaction as a recurring Nominal Journal template
Choose the type of account you want
Identify the purpose for the transaction
To create a recurring Nominal Journal template