Depreciation on fixed asset:
What is depreciation?
The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This decrease is measured as depreciation. Machinery, equipment, currency are some examples of assets that are likely to depreciate over a specific period of time.
How to record depreciation in ProfitBooks?
Step 1: Create depreciation and Fixed asset (For ex. furniture, machinery, etc.) account, from Accounting > Charts of account.
Step 2: Pass a journal entry from Accounting > Journal Entry
To see what entries are to be debited and credited, please refer to this Image.
Under the description box, users can mention the details.