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How to record a used vehicle purchased

how do i track expenses incurred for a used vehicle

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Best answer 03-11-2019

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Established Community Backer ***

you buy a car, you first create a fixed asset account car...

you buy a car, you first create a fixed asset account car, with a sub account accumulated depreciation car

write the check and use the car fixed asset account as the expense for the check

IF, if you have repairs to the car at the time of purchase to get it running, then you post those to the fixed asset account car too

after the car is in use, expenses are just that, auto expense, repair expense, fuel expense, etc

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Established Community Backer ***

you buy a car, you first create a fixed asset account car...

you buy a car, you first create a fixed asset account car, with a sub account accumulated depreciation car

write the check and use the car fixed asset account as the expense for the check

IF, if you have repairs to the car at the time of purchase to get it running, then you post those to the fixed asset account car too

after the car is in use, expenses are just that, auto expense, repair expense, fuel expense, etc

View solution in original post

Not applicable

Re: you buy a car, you first create a fixed asset account car...

If I purchase multiple vehicles do I create an account for each one? If they are financed are they still a fixed asset? Thanks

Established Community Backer ***

Re: you buy a car, you first create a fixed asset account car...

yes, each car should have its own fixed asset and associated accumulated depreciation account, it just makes it so much easier if there is an accident and the car is totaled or you sell/trade it in

 

yes being financed has nothing to do with it, it is still a fixed asset