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Depreciating Asset Acounts

Farmer_FrankFarmer_Frank Member Posts: 13

Not sure if this is the correct area for this question. I just purchased multiple assets that will need depreciated. Is it best to put them all in 1 depreciating asset account with 1 corresponding Depreciation account and just put all the entries there? or should I create a new account for each asset with it's own depreciating account and an accumulated Depreciation account?

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edited March 31, 2021 in Accounting Technical Support

Comments

  • MikegMikeg Member Posts: 995 ✭✭✭

    @Farmer_Frank,
    General practice is to create an asset account by class life. The IRS assigns certain class lives to business assets. Code each asset so that it falls under one of the class lives. ie. 5 year, 7 year etc. Accumulated can be done either as just one lump sum (typical one account) or you could create an accumulated for each asset class.

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