There are elements to buying any automobile. The first component is recording the asset and the second one component is recording the liability (if there’s mortgage at the automobile).If there’s no mortgage and the automobile become bought in cash then you could pass the second part. A Fixed Asset is some thing bought for long-time period use (commonly some thing so that it will final extra than a year). This is common equipment,machinery, land and cars. In this article we are discussing how to record a vehicle purchase in QuickBooks software.
To properly record purchased vehicle or any other fixed asset, follow the steps provided below:
I. Creating a Fixed Asset Account for Vehicles:
- Go to Chart of Accounts.
- Press on New.
- Choose Fixed Assets from the categories provided.
- Enter the name and description for the account.
- Select the Detail Type.
II. Adding the Purchased Vehicle:
To report the acquisition of the vehicle, clearly report a buy and link it to the Fixed Asset Account which you created with the aid of using following the steps furnished above.
III. Setting Up Liability Account:
A buy of a set asset may also include related liabilities like loans and EMI payments. To properly document the whole transaction, the person have to input and tune the legal responsibility. The legal responsibility account may be a Long Term Liability Account. To installation such an account, comply with those steps:
- Go to the Chart of Accounts.
- Press on Long Term Liability from the provided options and click on Next.
- Enter the details for the account such as name.
- Click on Save.
At this point, you should go away Unpaid Balance subject clean as we’ll be managing that later and notice that we’re nonetheless now no longer but completed with “the way to report a car buy in QuickBooks”. Here we want to by skip the mortgage entry.
To record the loan amount, follow the steps provided below:
- Press on the Create Button.
- Select Journal Entry.
- Press on the Account Drop down options and Select Liability Account.
- Enter the total amount for the loan on the Credit side.
- Select the Asset Account that you want the loan amount to be linked with.
- Enter loan amount again but this time on the Debit side.
You should also record every payment made for the loan. This can be done by entering checks and linking them to the loan.
Let me know if you have any questions or any query regarding a record vehicle purchase in Quickbooks, then connected with our QuickBooks technical support team through a call or QuickBooks online support 24×7.