[SQL-Ledger-users] Yet Another Chart of Accounts Question

[Wild A. S. <su...@wi...>]

In the chart of accounts, account numbers 1825, 1845 and 5660 are
related to amortization.  However, amortization only applies to
Intangible Assets (i.e., rights, privileges, competitve advantages,
etc.).  Furniture, equipment, vehicles are considered long-term tangible
assets and are usually depreciated over the life of the asset.

To support this, you need a depreciation expense account and an
accumulated depreciation account for each category of long-term tangible
asset.  Then the accumulated depreciation accounts are setup as contra
accounts.

Then the amount recorded in the depreciation expense account for that
particular asset is reported in the the Income Statement.  In the
balance sheet, you would have an entry that shows the purchase price for
the tangible asset minus the accumulated depreciation for the asset.

Just some thoughts!

Murrah Boswell