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Level 1

How to record fixed assets purchased in quickbook-USA? AND also how to record capital Brought in or Withdrawn?

 
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Best answer October 15, 2018

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Highlighted
Level 15

How to record fixed assets purchased in quickbook-USA? AND also how to record capital Brought in or Withdrawn?

@ davedamien

First the article, like many by intuit, has some errors in it.

In QBO or QBDT the process is

create in the chart of accounts a fixed asset type account named for the asset, then create two fixed asset type accounts as a sub accounts named cost-[name] and accumulated depreciation-[name]

You post the purchase of the asset to the sub fixed asset account cost-[name].  Parent accounts are summing accounts in QB and are not posted to

You record the depreciation with a journal entry
debit depreciation expense, credit accumulated depreciation-[asset name]

QB does not calculate depreciation, you have to do it manually

Capital

For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here

View solution in original post

9 Comments 9
Highlighted
Level 3

How to record fixed assets purchased in quickbook-USA? AND also how to record capital Brought in or Withdrawn?

Highlighted
Level 1

How to record fixed assets purchased in quickbook-USA? AND also how to record capital Brought in or Withdrawn?

but in case of online version this isn't available- these are available on desktop version
Highlighted
Level 3

How to record fixed assets purchased in quickbook-USA? AND also how to record capital Brought in or Withdrawn?

Yes, only in desktop. Submit a feature request. Gear icon > feedback.
Highlighted
Level 15

How to record fixed assets purchased in quickbook-USA? AND also how to record capital Brought in or Withdrawn?

@ davedamien

First the article, like many by intuit, has some errors in it.

In QBO or QBDT the process is

create in the chart of accounts a fixed asset type account named for the asset, then create two fixed asset type accounts as a sub accounts named cost-[name] and accumulated depreciation-[name]

You post the purchase of the asset to the sub fixed asset account cost-[name].  Parent accounts are summing accounts in QB and are not posted to

You record the depreciation with a journal entry
debit depreciation expense, credit accumulated depreciation-[asset name]

QB does not calculate depreciation, you have to do it manually

Capital

For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here

View solution in original post

Highlighted
Level 1

How to record fixed assets purchased in quickbook-USA? AND also how to record capital Brought in or Withdrawn?

I bought a business for $100,000 with cashier check from my business account.

How can I add that entry into quickbooks.

Thank you

Highlighted
Level 10

How to record fixed assets purchased in quickbook-USA? AND also how to record capital Brought in or Withdrawn?

What is the legal entity type of the business bought and the buyer, and were shares or assets bought?
Highlighted
Level 1

How to record fixed assets purchased in quickbook-USA? AND also how to record capital Brought in or Withdrawn?

its C-corp for buyer, S-corp for seller. Only assets (good will, equipment, books etc)
Highlighted
Level 10

How to record fixed assets purchased in quickbook-USA? AND also how to record capital Brought in or Withdrawn?

So it increases Fixes Assets on the balance sheet of the buyer.  When you record the check, use Fixed Asset Cost as the target account, one each for the different types of fixed asset
Highlighted
Level 1

How to record fixed assets purchased in quickbook-USA? AND also how to record capital Brought in or Withdrawn?

Thank You!  I will try it.  I have never found information on how to correct my Capital Assets list or add to that list.  Right now my capital asset list does not agree with my 990 Tax Return.  I am treasurer for a non-profit.  We have to file the 990EZ because our income is over $50,000 per year.  The 990EZ is NOT EASY!

 

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