Vehicle Depreciation Schedule

[jordan2k510]

I need to depreciate the new church bus and church sign. I have checked the V11 manual and cannot find a depreciation setup (other than the limited inventory depreciation section in Recordkeepeing.) Am I missing it? If not, please recommend your method to track the multi-year depreciation schedules that I need to establish.

[JohnDMeyers]

Depreciation of a vehicle:

Here are the necessary accounts:

01-1710-000 vehicle asset
01-1990-000 accumulated depreciation
01-5990-000 depreciation expense

If you have a vehicle worth $10,000, and you are allowed (by accountants) to depreciate over 10 years, then the depreciation is $1000 per year for this asset (and I will show selling the van in year 9).

Year 1 - buy the van
CR 01-1110-000 checking $10,000
DB 01-1710-000 vehicle asset $10,000
CR 01-1990-000 accumulated depreciation $1,000
DB 01-5990-000 depreciation expense $1,000

Years 2 - 8 depreciate the van
CR 01-1990-000 accumulated depreciation $1,000
DB 01-5990-000 depreciation expense $1,000


Your balance sheet will show the following after year 8:
Vehicle asset $10,000
Accumulated Depreciation $ -8,000
(actually, your accumulated depreciation will show all your depreciated values and be much more negative than $ -8,000, but this is a simple example)


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Year 9 sell the van for $2,500 (worth $2,000 "on the books" after deprecation)

Retire the asset:
DB 01-1110-000 checking $2,500 <-money paid for van

CR 01-1710-000 $10,000
DB 01-1990-000 $8,000 <-amount of depreciation attributed to van over 8 years

CR 01-4130-000 income from sale of van $500 <-profit from sale of van

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If you sell the van at a loss, like $1,500:

DB 01-1110-000 checking $1,500 <-money paid for van

CR 01-1710-000 $10,000
DB 01-1990-000 $8,000 <-amount of depreciation attributed to van over 8 years

DB 01-5130-000 expense from sale of van $500 <-loss from sale of van