declining balance amortization

Discussion in 'Quickbooks' started by Thweed, Jul 27, 2009.

  1. Thweed

    Thweed Guest

    I've established the asset accounts. How do I track the declining-
    balance each year as an amortization expense. Is it just a matter of
    establishing an amortization account and credit it with this year's
    cost and debit the asset account?
    Thanks for the help
     
    Thweed, Jul 27, 2009
    #1
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  2. No is it just a matter of establishing an amortization account and debit it
    with this year's
     
    Haskel LaPort, Jul 27, 2009
    #2
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  3. Thweed

    Mark Bole Guest

    With QB Premier Accountant or Enterprise, you can use the Fixed Asset
    Manager to automate this task.

    Otherwise, you would typically create an Accumulated Depreciation or
    Accumulated Amortization account (Fixed Asset) (depending on the type of
    asset). You then debit Depreciation/Amortization expense and credit
    Accumulated Depreciation/Amortization.

    The balance in the primary Fixed Asset account(s) should only change
    when you acquire or dispose of assets. The Accumulated accounts, of
    course, will typically have a negative balance.

    -Mark Bole
     
    Mark Bole, Jul 27, 2009
    #3
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