[GNC] Asset vs Equity accounts? (Stan Brown)

[Stan Brown]

On 2021-02-15 14:12, Larry Long wrote:
>  Stan,
> You gave an excellent intro into the fundamentals of accounting (and GnuCash)!

> I would like to follow up with a basic question of my own.
> Let's say that I have added my new car's value to Assets and my auto loan to Liabilities.After a year, I log the car's depreciation as a reduction to it's account in Assets.Where is the account for the offsetting depreciation amount?Is that an expense?

Yes, the two splits for a record of depreciation are a minus to
Asset:Car and an equal and opposite plus to Expense:Car Depreciation --
or perhaps Expense:Transportation. Of course you can set whatever
account titles you wish, and you can also decide how finely you want to
subdivide things.

Don't know if you've set up your GC to use standard accounting
terminology, but if you have then it would be a credit to the asset
(which decreases it) and a debit to the expense (which increases that).

-- 
Stan Brown
Tehachapi, CA, USA
https://BrownMath.com
https://OakRoadSystems.com