I've established the asset accounts. How do I track the declining- balance each year as an amortization expense. Is it just a matter of establishing an amortization account and credit it with this year's cost and debit the asset account? Thanks for the help
declining balance amortization
Jul 27, 2009
2 Replies
No is it just a matter of establishing an amortization account and debit it with this year's
With QB Premier Accountant or Enterprise, you can use the Fixed Asset Manager to automate this task.
Otherwise, you would typically create an Accumulated Depreciation or Accumulated Amortization account (Fixed Asset) (depending on the type of asset). You then debit Depreciation/Amortization expense and credit Accumulated Depreciation/Amortization.
The balance in the primary Fixed Asset account(s) should only change when you acquire or dispose of assets. The Accumulated accounts, of course, will typically have a negative balance.
-Mark Bole
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