How do I create an Asset account?
These instructions relate to adding an Asset account to your Chart of Accounts. Also have a look at the Kowledge Base item on Entering An Asset Purchase.
Step 2. - Add an Accummulated Depreciation account (contra Asset account)
You can depreciate most types of tangible property such as buildings, equipment, vehicles, machinery and furniture, so you may need to also add an Accumulated Depreciation account.
Note: Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its life. Accumulated depreciation is a contra asset account, meaning its natural balance is a credit that reduces the overall asset value.
Step 3. - Create an Other Expense account for the purchase of the asset which links to the corresponding balance sheet account - (Asset) Plant & Equipment.
Step 4. - Create an Other Income account for the sale of the asset which links to the corresponding balance sheet account - (Asset) Plant & Equipment.