Noob Question

[Maf. King]

On Tuesday 15 Apr 2008, Rudi wrote:

> That all work's great and the cash transaction is recorded
> fine. My question is regarding my new physical asset.
>
> The item, a digital camera, where would I record this new asset?
>

Hi,

If you create a new "Asset:Possessions" account, you record your purchase not 
as an expense (your net worth hasn't really gone down - you have 
changed "money" asset into "camera" asset) but a transfer between your bank 
and the asset:possessions account.

Depreciation over time is the expense, as the camera ages and becomes less 
valuable.

HTH,
Maf.