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LinenLady
Level 1

Recording a car purchase with deposit and finance (Simple Start version of Quickbooks)

 

New car purchased from dealer. We have paid cash deposit from business transaction account, with balance of amount coming from finance.

 

My question is how do I record total purchase of car from dealer (we are using Simple Start version of QB so cannot use bills/supplier credits).

 

I am OK with setting up the loan as long-term liability, but not sure on recording the asset/purchase. 

 

Thanks

1 Comment 1
BettyJaneB
QuickBooks Team

Recording a car purchase with deposit and finance (Simple Start version of Quickbooks)

I'm happy to see you here in the Community, @LinenLady.

 

I've got some instructions to share with you regarding setting up and recording assets in QuickBooks Online.

 

You can create an asset account in QuickBooks Online. This is to track the current value your assets or the things that are owned by your company.

 

To do that:

  1. Click on the Gear icon.
  2. Select on Chart of Accounts.
  3. Hit on New.
  4. From the Account Type ▼ drop-down, choose Fixed Assets.
  5. In the Detail Type ▼ drop-down, select the option that closely describes your asset.
  6. Name the account, press the Track depreciation of this asset checkbox.
  7. Enter the current value of your asset in the Original cost field and the as of date. 
  8. Hit on Save and Close.

From there, you can now start recording your purchases. For more information about dealing with assets and its depreciation, please check out these links:

To ensure that your setup is correct, I highly suggest consulting an accountant. They'll be able to provide you the best course of action for your business, especially when it comes to organizing your books.

 

In addition, here are articles that you can visit about the different types of accounts in the COA and on how to navigate QBO's functionalities:

Know that I got your back if you have any other concerns. I'll make sure you're all set. Take care, LinenLady.