I have limited accounting and bookkeeping experience from my previous job but could do with some help on some specifics.
With a car as an asset in 0050 the credit depreciation would go to 0051. Would the debit go in 8000 (fixed asset depreciation, the car is a fixed asset) or 8003 (Vehicle Depreciation)?
0051 should be fine as this would then appear on your balance sheet with the asset. Although I’m not an accountant so it’s always worth double checking.
Your journal would be (for £500 depreciation):
8003 CR 500
0051 DR 500
I hope that helps!
You are correct that the credit side goes in 0051 (and QuickFile will net off 0050 and 0051 on the balance sheet if you tick “show net book value”). I don’t think it particularly matters which 8xxx account the debit entry goes in as long as you’re consistent, I’d personally go for the more specific one but either will put the depreciation charge for the year into P&L, which is essentially what you require.
I would suggest that you put the credit side at 0051 and debit side at 8003 so you know what depreciation in your P&L relates to on the balance sheet ie they should net off at the year end.
Thanks for the replies, think ill use 8003. Its a shame that there isn’t an 8001 to match 0051, an 8002 to match 0052 etc…
Hi Hactar, the system only lists popular nominals, so you can simply create the 8001 etc to suit your paticular assets instead of using the general 8000 for all asset depeciation