Entering Depreciation

In QuickBooks, you make journal entries by using the General Journal Entry window, which you get to by choosing Company⇒Make Journal Entries. If you don’t understand double-entry bookkeeping but want to, take a gander at Appendix B.

To track the depreciation of an asset that you already purchased and added to the Chart of Accounts, you need two new accounts: a Fixed Asset type of (Balance Sheet) account called something like Accumulated Depreciation an Expense type (Profit and Loss) account called something like Depreciation Expense.

After you set up these two accounts, you can record the asset depreciation with a journal entry, such as the following one that records £1000 of depreciation expense: