Entry into Asset Account

Options
Yoshe Hodgkinson
Yoshe Hodgkinson Member Posts: 2 ✭
edited April 2020 in Reckon Accounts (Desktop)
Upon setup, the company vehicle was entered under the company account, which is not showing on the Profit & Loss Statement. We have been told that we need to enter it into an Asset Account? Is this true? and how do I do this? We are using QuickBooks 2009/10. TIA

Comments

  • cosmic
    cosmic Reckon Developer Partner Posts: 1,075 ✭✭✭
    edited September 2018
    Options
    I would strongly advise to seek your engaged accountants advise on this, even though, this can be answered very easily by any one in this forum.

    Cosmic Accounting Group

    Accountants and Tax Agents 22397009

  • Yoshe Hodgkinson
    Yoshe Hodgkinson Member Posts: 2 ✭
    edited August 2015
    Options
    I am strongly trying to avoid using an accountant which is why I am trying to learn how to do this myself. Thank you for your input though :)
  • Kathy Mackinlay_6947388
    Kathy Mackinlay_6947388 Member Posts: 141 ✭
    edited August 2015
    Options
    I would bring a vehicle in as a fixed asset.
  • Janos
    Janos Member Posts: 30 ✭
    edited August 2015
    Options

    Hi Yoshe,

    If the purchase of the company vehicle was correctly entered as an asset purchase, as it appears to have been, it will not show up in the Profit and Loss Report.

    An asset purchase is not an expense. You simply exchange one asset (Cash) for another asset (Car). There is no profit or loss in that exchange. It is like transferring money from one bank account to another.

    If you want to report it to management, use a cash flow report.

    Janos



  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited April 2020
    Options
    Hi Yoshe

    Further to Janos good advice, the car will show up on the Balance sheet, which gives you all your assets & liabilities and the business net worth.

    However, the asset purchase itself goes into Assets, if you are paying the vehicle off, you also need to set up the loan account, then payments made come off the loan... interest and depreciation are the only parts that show up on the P&L.

    Again I am with Chandra, you need to seek the advice of an accountant, as I work with many, and they all have a different way they like it setup and tracked.
  • cosmic
    cosmic Reckon Developer Partner Posts: 1,075 ✭✭✭
    edited September 2018
    Options
    Yes, as per Kim and Janos, you also need to balance each financial year the loan statement to see the interest component is properly picked up. Remember, this Asset is taken up by your Tax agent to do Tax dep and the figures he produces in Tax Return Dep schedule must BALANCE with asset balance in your BS .Its very important you liase with your tax agent. aslo was the car purchased as operating lease or financial lease ? are you fully informed on this?

    Cosmic Accounting Group

    Accountants and Tax Agents 22397009

Categories