QuickBooks Accounting Software - Removing an Obsolete Asset

I bought a Sony laptop in 2004 which I stopped using a few years later. When I bought the laptop it was tied to an "asset" in QuickBooks - and that asset was still listed on my QuickBooks balance sheet in 2010! I had no idea how to get that asset "off" my balance sheet even though the actual item was long gone. After a deal of research this is what I figured out to do.

First, I created a new Expense account and called it "Depreciation tracker". This is where the depreciation for an asset is kept track of. In balance sheets everything has to equal out in the end. If your asset loses value, something else has to gain value.

Then I created a journal entry for when that asset (the laptop) was no longer in use by me. I did this under Company - Make General Journal Entries.

For the Sony Laptop account, I gave it a *credit* of the purchase amount. This balanced out the expense of buying that item.

On the same journal entry, I matched that row with a row that went to the Depreciation Tracking account. I gave it a *debit* of the same amount.

Now my asset of "Sony Laptop" was zeroed out, and I could mark it as inactive on the chart of accounts. It no longer shows up on my balance sheets.

I want to note here that I am not an accountant, so if someone is doing this for tax reasons, they should always talk with their accountant

QuickBooks Techniques
QuickBooks QIF to IIF
QuickBooks Cleanup
QuickBooks Other Names Entries
Quickbooks Removing an Obsolete Asset
Quickbooks Estimated Quarterly Taxes
Quickbooks IRA Payments
Quickbooks Opening Bal Equity
Quickbooks Lending / Loaning Money
Quickbooks Retained Earnings

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