To record depreciation

If you haven’t already read the General Journal Entries Overview, see Recording depreciation for more information.

The General Journal Entry window should be displayed.

  1. 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.
  2. Next, create a new expense account called “Depreciation Expense.”
  3. Make General 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 General Journal template

Choose the type of account you want

Identify the purpose for the transaction

To create a recurring General Journal template

To record depreciation