declining balance amortization

Posted by Thweed on July 27, 2009, 12:03 pm

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I've established the asset accounts. How do I track the declining-
balance each year as an amortization expense. Is it just a matter of
establishing an amortization account and credit it with this year's
cost and debit the asset account?
Thanks for the help

Posted by Haskel LaPort on July 27, 2009, 1:30 pm

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> I've established the asset accounts. How do I track the declining-

> balance each year as an amortization expense. Is it just a matter of

> establishing an amortization account and credit it with this year's

> cost and debit the asset account?

> Thanks for the help

No is it just a matter of establishing an amortization account and debit it
with this year's

> cost and credit the asset account?

Posted by Mark Bole on July 27, 2009, 2:57 pm

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Thweed wrote:

> I've established the asset accounts. How do I track the declining-

> balance each year as an amortization expense. Is it just a matter of

> establishing an amortization account and credit it with this year's

> cost and debit the asset account?

> Thanks for the help

With QB Premier Accountant or Enterprise, you can use the Fixed Asset
Manager to automate this task.

Otherwise, you would typically create an Accumulated Depreciation or
Accumulated Amortization account (Fixed Asset) (depending on the type of
asset). You then debit Depreciation/Amortization expense and credit
Accumulated Depreciation/Amortization.

The balance in the primary Fixed Asset account(s) should only change
when you acquire or dispose of assets. The Accumulated accounts, of
course, will typically have a negative balance.

-Mark Bole