The Draw acct should be zeroed out to Owners Capital (Sole Pro.) or Retained Earnings (Corp) at the end of each accounting period - a calendar or fiscal year - which ever one your business uses. You would do this by Journal Entry Debit - Owners Capital Acct (because draws reduce capital) & Credit - Draw Acct (this will zero out the debit balance) Hope this helps.
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I realize this is an older question, but I just wanted to add that you could still track each individual asset. In the Chart of Accounts (where >> is sub account) create a parent account and sub accounts for each asset you want to keep track of accumulated depreciation and the current "book" value as follows: Equipment 1 (parent acct.) >>Equipment 1 cost (sub acct.) >>Accumulated Depreciation Equipment 1 A) Enter the purchase amt (value) in the "Equipment 1 cost (sub acct,)" and then B) each month (or year, whichever your company does) enter the amt of depreciation in the "Accumulated Depreciation Equipment 1(sub acct.)" The parent account "Equipment 1" will automatically total the current value of the Asset (Cost -less- Accum. Depre.). You can do this for all your assets, and the current value can be seen in the parent acct, while the accum. depre. amt can be just as easily found in each sub acct. If you would also like to know the Total Amt. of all Depreciation (for all assets combined) you could create a parent Accum. Depre. Acct. to collect that info for you as well. However, most financial reports want you to list each asset and its depreciation amt individually. Hope this can help someone in the future.
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