Record equipment lost

Accounting
1

Hello

I have a piece of equpiment I bought in the last financial year that has broken, cannot be repaired and has now been disposed off. How do I record that in quickfile so it no longer shows as an asset please?

Thanks

Keith

2

From what I know, this is a type of depreciation. If the equipment has no useful purpose in your business then you can fully depreciate it (i.e. transfer it off the balance sheet and onto the P&L). You would achieve this via a Journal in QuickFile.

You may find the following link to be helpful, I think the first scenario is applicable here.

How do I write off a fixed asset?

Disclaimer: I’m not an accountant so I would always recommend you seek professional advice.

3

Thank you. Would you or anyone happen to know if the following would be correct please? (I originally logged the equipment as plant/machinery nominal code.

(0021) Plant/Machinery Depreciation (Debit the amount it cost)
(0020) Plant and Machinery (Credit the amount it cost)

(or is it the other way round?)

Thanks in advance

4

That looks right to me!

5

Thanks. I’ve just tried it the other way round and I think that takes it off the balance sheet. I’ll get an accountant to check it over though. Thanks for your help.

6

Assets appear as debits on the balance sheet:

So crediting the asset code and debiting the P&L code should be what’s required here.

7

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