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sahug1
Mar 12, 2019 1:34 AM UTC
Solved

How to record a used vehicle purchased

how do i track expenses incurred for a used vehicle

    Rustler
    RustlerAnswer
    Mar 12, 2019 1:34 AM UTC

    you buy a car, you first create a fixed asset account car, with a sub account accumulated depreciation car

    write the check and use the car fixed asset account as the expense for the check

    IF, if you have repairs to the car at the time of purchase to get it running, then you post those to the fixed asset account car too

    after the car is in use, expenses are just that, auto expense, repair expense, fuel expense, etc

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    8 replies

    Rustler
    RustlerAnswer
    Mar 12, 2019 1:34 AM UTC

    you buy a car, you first create a fixed asset account car, with a sub account accumulated depreciation car

    write the check and use the car fixed asset account as the expense for the check

    IF, if you have repairs to the car at the time of purchase to get it running, then you post those to the fixed asset account car too

    after the car is in use, expenses are just that, auto expense, repair expense, fuel expense, etc

      gendusobillingandconsulting
      May 15, 2019 1:27 PM UTC

      If I purchase multiple vehicles do I create an account for each one? If they are financed are they still a fixed asset? Thanks

      Rustler
      Rustler
      May 15, 2019 3:39 PM UTC

      yes, each car should have its own fixed asset and associated accumulated depreciation account, it just makes it so much easier if there is an accident and the car is totaled or you sell/trade it in

       

      yes being financed has nothing to do with it, it is still a fixed asset

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