To record depreciation

The Record Journal Entry window should be displayed. (To find this window)

1. Create one new asset account for each of the accounts you depreciate. Add the words "Accumulated Depreciation" at the end of each new account's name. Give the new accounts numbers that directly follow their corresponding asset accounts. See Creating accounts for more information.
2. Next, create a new expense account called "Depreciation Expense."
3. Make General Journal entries to credit the Accumulated Depreciation asset accounts and debit the Depreciation Expense account. The asset accounts will always have a negative balance to show a reduction in the value of the depreciable assets.