On 11/29/2022 8:18 PM, Dr. David Kirkby wrote:
I want to start using GnuCash for a company I set up several years ago. The
company has some assets - mainly electronic test equipment. Let’s
hypothetically assume
VNA £1000
Signal generator £500
Frequency counter £250
Calibration kit £2000
Total is £3750
Is there a way of entering the individual items into GnuCash? I realise
that I can create an account
Assets -> Test equipment
with an opening balance of £3750, but that doesn’t itemise individual
items.
It would be a bit tedious to create accounts for every item individually
Assets -> Test equipment -> VNA
Assets -> Test equipment -> Signal generator
Assets -> Test equipment -> Frequency counter
and set each to have an appropriate opening balance.
Normally under "assets" one might have a number of high level
sub-accounts. For example "current assets" (cash and cash equivalents,
bank accounts, A/R (could be "factored), negotiable instruments, etc.
Then there might be "inventory" if the business bought and sold widgets.
But the sub-category you are asking about is "fixed assets". HOW you
subdivide further probably best dictated by how you depreciate them and
I haven't a clue about "depreciation" rules in the UK.
a) If your gnucash books already exist I would create the accounts with
zero balance and add the current BOOK VALUE* with a transaction.
b) HERE I would need to know the year purchased, original basis, and
total depreciated so far. For that reason I probably would have
assets:fixed assets:test equipment: (and then each because the
depreciation history for each likely different.
I will stop here because you aren't so much asking a gnucash question as
a "fundamentals of accounting" question and you need to look up
"accounting for/depreciating the fixed assets of a business" and
"adjustments upon disposal of a fixed asset" in accordance with the
rules of your jurisdiction. In other words, THAT would be the same as in
the old days of keeping you books by hand pen and ink on paper. Those
rules will affect your choices with regard to "keep all together" vs
"have each separate", etc.
Michael D Novack
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