Entering asset depreciation

Depreciation of assets is entered into the Bookkeeping program using the general journal screen. You use the values from your depreciation schedule, or provided by your accountant, and enter these using a general journal entry.

If you are depreciating a pool of assets then it is common practice to have a separate account that records the accumulated depreciation of the assets instead of recording the depreciation directly into the asset account.

The debit account is the depreciation expense account where you record the depreciation claimed as an expense in the current financial year.

The credit account is the accumulated depreciation asset account. This is the account that records the accumulation of all depreciation over time so that a net value for the assets can be calculated.

The amount and description should also be entered to complete the transaction.