Re: [SL] Example of booking depreciable assets and depreciation?

[David J <ja...@in...>]

Ed
Talk to your accountant, or google for Accounting 101.
Why the double shuffle with the acquisition ?
And to depreciate :
Dr Depreciation expense
Cr Accumulated Depreciation.
Don't touch the cost.
You're welcome
David J 

> Hi
> 
> I'm sure that there are plenty of examples somewhere on
> the SL list, but  I couldn't locate any easily with
> google.
> 
> Can someone please give me an example of the transactions
> required to  book buying an item like an office printer,
> then adding it to the  depreciable assets and finally
> knocking off 40% for the first years  depreciation?
> 
> - I am using a fairly close to default COA. 
> - I buy my printer with an AP invoice, booking it into
> something  like an admin expenses account called "Computer
> Expenses".  - I then put in a journal entry to transfer it
> from here into my capital  assets ledger: "Office
> Furniture & Equipment " - Then I put in another
> transaction to shift 40% from the capital assets  account
> into "Accum. Amort. -Furn. & Equip. "
> 
> This all looks nearly correct on the balance sheet, but I
> don't appear  to have the depreciation turning up on the
> Income Statement report?   What am I missing?  Does this
> sound like the correct way to book the  transaction?
> 
> 
> What I *think* I am doing wrong is that last transaction? 
> Should the book assets account remain showing the full
> book value of the assets, and instead the transaction is
> something like credit "Computer expenses", debit "Accum.
> Amort. -Furn. & Equip. "?  This would seem to make more
> sense
> 
> Also, would it be better to set up the COA so that the AP
> invoice directly books into the capital assets account?  I
> guess Dieter intended these kinds of capital assets to be
> entered directly using a GL transaction rather than an AP
> invoice? In my case it's useful to track the seller
> details though
> 
> So, in conclusion should the correct transactions be:
> 
> - AP invoice -> Office Furniture and Equip (asset account)
> - GL: "Accum. Amort. -Furn. & Equip. " -> "Computer
> Expenses" (or similar cost account?)
> 
> Cheers
> 
> Ed W
> 
>