Recording a loss of for purchase of a shed when company liquidated.

Welcome to the Community, Wallumbilla.

I'm here with the steps on how to record the loss in QuickBooks Online by making an expense account, service item, and sales receipt. Allow me to walk you through the process:

Here's how to create an Expense account:

1. At the left navigation panel, select Transactions.
2. Click Chart of Account, then select New drop-down.
3. Under Account Type, click on Expenses.
4. Fill in the important details.
5. Click Save and close.

Next, we can make a Service item using the expense account.

1. At the left navigation panel, select Sales.
2. Click Product and Services, then select New drop-down.
3. Select Service.
4. Under the Income account, choose the expense account that we make.
5. Select Save.

Now, we can proceed on creating Sales Receipt.

1. Click + New.
2. Under Product/Service, choose the service item that we make.
3. Enter the amount.
4. Select Save

Additionally, you can run reports to obtain valuable insights into your purchasing and selling activities, along with a comprehensive overview of your inventory status.

Let us know if you have further concerns regarding your transactions. We're always available to assist.

Hi

Thanks fir the help so far however Quickbooks does not let me enter a negative $ amount on the sales receipt.

Hello Wallumbilla Rifle Club,

I appreciate you for trying the steps shared by my colleague. I'm here to ensure you track the lost asset in QuickBooks.

To record for the loss asset, you'll have to record the funds you received from your government first. To do so, you can create a bank deposit. Then, you can use an income account.

Then, since you already entered a purchase order for the shed, make sure that the Category Details is set to Fixed Asset account. Then, the Detail Account is Buildings, and then the asset cost is $0. 

Once done, record a bill and its payment to keep track of the amount you paid. From there, you'll have to create another Fixed Asset account (the Detail Type is Accumulated Depreciation) to negate the value of the lost asset. You can name it as a Lost shed asset. 

From there, make a journal entry to debit the Accumulated Depreciation account and then credit the Fixed Asset account for the shed.

Before doing any of the steps above, I suggest reaching out to our accountant so they can guide you accordingly without messing up your account.

Furthermore, you can check this article as your reference in tracking your company's income and expenses: Run a Profit and Loss report by bank account.

Keep me posted whenever you have concerns about tracking transactions.