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Oct 16, 2018 1:39 AM UTC
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How to record fixed assets purchased in quickbook-USA? AND also how to record capital Brought in or Withdrawn?

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Rustler
RustlerAnswer
Oct 16, 2018 1:39 AM UTC

@ davedamien

First the article, like many by intuit, has some errors in it.

In QBO or QBDT the process is

create in the chart of accounts a fixed asset type account named for the asset, then create two fixed asset type accounts as a sub accounts named cost-[name] and accumulated depreciation-[name]

You post the purchase of the asset to the sub fixed asset account cost-[name].  Parent accounts are summing accounts in QB and are not posted to

You record the depreciation with a journal entry
debit depreciation expense, credit accumulated depreciation-[asset name]

QB does not calculate depreciation, you have to do it manually

Capital

For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here

9 replies

DaminiAuthor
Oct 16, 2018 1:39 AM UTC
but in case of online version this isn't available- these are available on desktop version
Test2Go
Oct 16, 2018 1:39 AM UTC
Yes, only in desktop. Submit a feature request. Gear icon > feedback.
Rustler
RustlerAnswer
Oct 16, 2018 1:39 AM UTC

@ davedamien

First the article, like many by intuit, has some errors in it.

In QBO or QBDT the process is

create in the chart of accounts a fixed asset type account named for the asset, then create two fixed asset type accounts as a sub accounts named cost-[name] and accumulated depreciation-[name]

You post the purchase of the asset to the sub fixed asset account cost-[name].  Parent accounts are summing accounts in QB and are not posted to

You record the depreciation with a journal entry
debit depreciation expense, credit accumulated depreciation-[asset name]

QB does not calculate depreciation, you have to do it manually

Capital

For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here

Mar 11, 2020 4:37 PM UTC

Thank You!  I will try it.  I have never found information on how to correct my Capital Assets list or add to that list.  Right now my capital asset list does not agree with my 990 Tax Return.  I am treasurer for a non-profit.  We have to file the 990EZ because our income is over $50,000 per year.  The 990EZ is NOT EASY!

 

Oct 16, 2018 1:39 AM UTC

I bought a business for $100,000 with cashier check from my business account.

How can I add that entry into quickbooks.

Thank you

Oct 16, 2018 1:39 AM UTC
What is the legal entity type of the business bought and the buyer, and were shares or assets bought?