USA How to record a negative Asset

[Amanda Muzichuck]

For my ASSET account, I have a beginning balance of ($406.10) and an ending balance of ($54,377.45). Do I record the adjusting journal entry as a DEBIT of $53,971.35 to the ASSET account and then a CREDIT to the FUND BALANCE account.

Or is it a Credit to the Asset account and then a debit to my fund balance account?

Because the asset account begins with a negative number and ends with a larger negative number, I am being thrown off for some reason and keep second guessing myself. Any advice or direction will be very much appreciated

 

[Bad Medicine]

For assets, debits increase, and credits decrease. So if you wanted to increase a cash account (add money to it) then you would debit it, and if you wanted to decrease it (take money from it) you would credit it.

Selling an asset is a credit to the asset and a debit to cash.

Does that help ?

 

[Ana Rendon]

If the asset needs to be reported as a credit balance, and you already have a negative balance carried over from previous period than in order to increase that credit balance , you need to apply another credit. And debit the offset account, out of curiosity why do you need to report the asset in a credit balance?...

 

[Fidget]

out of curiosity why do you need to report the asset in a credit balance?...

I'm wondering the same thing.