When you record assets to your company account, it adds to your company value. But some assets like housing and cars will depreciate (reduce in value) over time. Therefore, to record the exact value of your company's asset, it is important to record the depreciation of the asset. Besides, if your company is a property agent, calculating the exact value of the asset at different point of time is important as these values will be shown on your company's profit and loss statement.
Answer:
To record depreciation of an asset, go to General Ledger > Journal Entry.
Click on “New Journal Entry” to process.
Make Journal Entry: Debit depreciation (expenses account); Credit accumulated depreciation (asset account)
After recording the depreciation of the asset, TreezSoft will automatically use the figure in calculation of your company's asset value.
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