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SearchGal
Jan 16, 2022 11:23 PM UTC
Question

company vehicle purchase- how to categorize...

Hello,

I am new to QuickBooks and have the following question.

I recently bought a vehicle (pre-owned) to use for my business. May I ask what the correct category under the cart of accounts would be to use? I see "vehicles - other current asset" or "vehicles - fixed asset".

Thank you. 

2 replies

Rustler
Rustler
Jan 17, 2022 12:23 PM UTC

Open the chart of accounts and create a new ...

 

fixed asset account, as a sub account of fixed assets and name it for the vehicle

another fixed asset account as a sub account of the vehicle fixed asset account and name it accum depreciation vehicle

 

use the vehicle fixed asset account as the expense (reason) for the purchase

End of the year you will do a journal entry for accumulated depreciation

debit depreciation expense, credit fixed asset accum deprec vehicle

see IRS pub 946 for depreciation schedules

    SearchGalAuthor
    Jan 17, 2022 5:15 PM UTC

    Thank you so much. This is clear!

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