We had a trailer that was written off due to an accident, how do I remove that as an asset so I can add the new trailer we purchased?

Hi bri_trahan-hotma.

Being able to write off one of your assets and adding a new one is key to keep your accounts accurate to show what you still own. I'd be happy to help you with getting your previous assets removed so you can add a new one.

In order to remove an an asset that needs to be written off you'll need to create a journal entry. I recommend reaching out to your accountant on what accounts to use and how to enter the new asset. If you don't have an accountant no worries, we can help. You can go to My Accountant>Find a pro to help to find one in your area.

If you have any questions let us know and we'd be happy to help.

Hey @bri_trahan-hotma 

@Nick K is correct in so far as you probably shouldn't do what you're trying to do without the help of your Accountant/Tax Preparer. Accounting wise it's not correct to simply write-off an Asset and then add a new one in it's place.

They're two separate things and so long as you explain to whomever is concluding your Year End then it will work out. Meanwhile this is what you can do.

1. Post a Journal Entry removing the Cost of the Old Asset and any Accumulated Depreciation from those accounts, effectively Zeroing them. This will be a Credit Entry on your Asset and a Debit Enty on the Depreciation. (If you do not know that the actual amount of Depreciation for the trailer specifically is, then leave that for your Accountant, they will have a record)

The double entry for these two is an Account in your Profit & Loss called "Gain/Loss on Disposal of Assets"

Now that's essentially the old Trailer written off, or at least put in a place your Accountant will notice it. Be sure and use a Memo to explain WHY you're doing that.

2. Next you're buying a new trailer. So go ahead and post a new Expense or Bill and post it to a New Property, Plant & Equipment type account. Name the Account the Year Make & Model of the Trailer and attach a copy of the Bill etc.

Also as a Bonus you mentioned the old Trailer was written off due to an Accident. If you received an Insurance Check for that, then post it also to the "Gain/Loss on Disposal of Assets" account.

Easy stuff? maybe not but at least now you know

I hope that helps you out

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McBride Bookkeeping