New Asset Account

[lennawesson]

I am trying to increase our asset value for various remodeling projects. Am I right in thinking that I should debit an asset account and credit our equitity account. My question is do I need a seperate asset account set up for remodels.

How do I do this so that it increases the value of the building?

[JohnDMeyers]

I assume you have money (in a bank account), and you are using the money to improve your building.

If that is the case, you do this:
CR cash bank account
DB building asset


In other words, the DB building asset is used instead of DB expense account.

If you want to keep track of the remodels, you can put a sub-account on the asset account or you can move the money to a separate fund, temporarily, to show all the building improvements, then move back one lump sum to increase the building asset in the General Fund.