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YAD
December 28, 2020
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How do you deal with a depreciated fixed asset that is no longer in use?

  • December 28, 2020
  • 1 reply
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I have a computer system that died with two more years of time remining on the depreciation schedule.  Since I cannot apply a depreciated amount for this period as an expense, what should do I?  My balance sheet will still show the original cost of the equipment, but the accumulated depreciation amount would not show that the equipment is no longer in service.  How do I address this? Any help will be greatly appreciated.  Thanks.

Best answer by MirriamM

Hello there, YAD.

 

You can create a journal entry to record the depreciated amount by debiting all the depreciation expense, then credit fixed asset. However, before we proceed with the steps, I highly suggest consulting your accountant for guidance on which option best suits for you. Then, verify the account for the debit and credit side of the transaction.

 

To create a journal entry in QuickBooks Online (QBO), here's how:

  1. Click the + New button in the left navigation menu.
  2. Select Journal entry. 
  3. Fill out the fields to create your journal entry.
  4. Pick Save and new or Save and close.

For your future tasks, here's a helpful article for some directions when you're ready to do the year-end tasks: QuickBooks Online year-end guide and checklist.

 

Keep me posted if you have any additional questions, as I'm always here to help. Take care.

1 reply

M
MirriamMAnswer
December 28, 2020

Hello there, YAD.

 

You can create a journal entry to record the depreciated amount by debiting all the depreciation expense, then credit fixed asset. However, before we proceed with the steps, I highly suggest consulting your accountant for guidance on which option best suits for you. Then, verify the account for the debit and credit side of the transaction.

 

To create a journal entry in QuickBooks Online (QBO), here's how:

  1. Click the + New button in the left navigation menu.
  2. Select Journal entry. 
  3. Fill out the fields to create your journal entry.
  4. Pick Save and new or Save and close.

For your future tasks, here's a helpful article for some directions when you're ready to do the year-end tasks: QuickBooks Online year-end guide and checklist.

 

Keep me posted if you have any additional questions, as I'm always here to help. Take care.

Y
YADAuthor
December 29, 2020

Thank you @MirriamM 

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