What kind of account is accumulated depreciation in QuickBooks?
Yes, the Accumulated Depreciation would be a negative number, always as a Contra Asset account. Normally, you will have the Fixed Asset type as a parent account in QBO and then you will have two sub-accounts (original cost and accumulated depreciation) under that FA account type.
How do you put Accumulated depreciation in QuickBooks desktop?
Step 2. Set up General Ledger (G/L) Account in QuickBooks Desktop
- Create a Fixed Asset account for each asset (or group of assets) that you want to depreciate.
- Add two subaccounts to each Fixed Asset account you created.
- Create an expense account named Depreciation Expense that will track your depreciation expense.
How do you create an accumulated depreciation account?
The basic journal entry for depreciation is to debit the Depreciation Expense account (which appears in the income statement) and credit the Accumulated Depreciation account (which appears in the balance sheet as a contra account that reduces the amount of fixed assets).
What type of account is accumulated depreciation?
The accumulated depreciation account is a contra asset account on a company’s balance sheet, meaning it has a credit balance. It appears on the balance sheet as a reduction from the gross amount of fixed assets reported.