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March 12, 2019
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How to record a used vehicle purchased

  • March 12, 2019
  • 1 reply
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how do i track expenses incurred for a used vehicle

Best answer by Rustler

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

1 reply

Rustler
RustlerAnswer
March 12, 2019

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

May 15, 2019

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
May 15, 2019

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