FrontAccounting forum — buying tools and equipment

Re: buying tools and equipment

null@example.com (joe) — Mon, 24 Mar 2014 06:57:49 +0000

In this case you buy the tool by entering the asset account. At year end (or periodically) you do your depreciations on a depreciations account.

Please talk to a local accountant for these type of questions.

/Joe

Re: buying tools and equipment

null@example.com (cristiart) — Mon, 24 Mar 2014 01:19:50 +0000

but if you buy a 10k tool, that's an asset but also an expense. how would you write that off at the end of the year? how would you calculate/enter the depreciation of the tool over time...
same think with a vehicle; down payment, monthly payments, miles depreciation ...

Re: buying tools and equipment

null@example.com (joe) — Sun, 23 Mar 2014 22:25:40 +0000

Tools and Equipment is here an inventory account (assets). Expense accounts for minor tools are placed in Expense and should be used for minor purchases.

Joe

Re: buying tools and equipment

null@example.com (cristiart) — Sun, 23 Mar 2014 21:51:17 +0000

it's under Capital Assets

Re: buying tools and equipment

null@example.com (joe) — Sun, 23 Mar 2014 19:53:51 +0000

Check that your account 1821 is belonging to the correct account group.

Joe

buying tools and equipment

null@example.com (cristiart) — Sun, 23 Mar 2014 18:15:13 +0000

What is the proper way to register tools?
I know tools are capital assets but they are also an expanse. If I make a payment and select 1821 Tools and Equipment from charts of accounts i notice that my checking account gets deducted for the amount, but i can not seems to find the expanse under Profit & Loss Drilldown.
What am I missing?