company vehicle purchase- how to categorize...

Forum|Forum|4 years ago
January 16, 2022
1 reply
37 views

Hello,

I am new to QuickBooks and have the following question.

I recently bought a vehicle (pre-owned) to use for my business. May I ask what the correct category under the cart of accounts would be to use? I see "vehicles - other current asset" or "vehicles - fixed asset".

Thank you.

QuickBooks Online

Rustler

Level 15

Open the chart of accounts and create a new ...

fixed asset account, as a sub account of fixed assets and name it for the vehicle

another fixed asset account as a sub account of the vehicle fixed asset account and name it accum depreciation vehicle

use the vehicle fixed asset account as the expense (reason) for the purchase

End of the year you will do a journal entry for accumulated depreciation

debit depreciation expense, credit fixed asset accum deprec vehicle

see IRS pub 946 for depreciation schedules

SearchGalAuthor

Thank you so much. This is clear!

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