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    boarguello's Avatar
    boarguello Posts: 4, Reputation: 1
    New Member
    		  
    #1

    May 23, 2007, 02:21 PM
    Posting an asset
    Okay, I think Im sure how to do this. Im working for a company who has done this all wrong from the get go, so Im here to try to rectify the bookkeeping system.

    Mind you Im working with nothing, one company with 2 locations. Bank statements have not been reconciled in 4 months, no journal entries for NP withdrawn from their main checking account.

    I know that when you purchase a vehicle or piece of equipment you debit your asset account and credit the NP (Tahoe) for example. Im using fake #'s so here goes.

    THey purchsed a vehicle for 32,000

    DB Vehicles (assets)
    CR NP - Tahoe (long term liabilities)?

    Then when you make your monthly payment you debit your NP - Tahoe and CR your bank account (cash)

    Am I correct?

    Thanks!

    :D
    bunnyKutty's Avatar
    bunnyKutty Posts: 60, Reputation: 5
    Junior Member
    		  
    #2

    May 23, 2007, 06:45 PM
    Yes you are correct.
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