[GNC] How can I enter all fixed assets?

[Michael or Penny Novack]

On 11/29/2022 8:18 PM, Dr. David Kirkby wrote:
> I want to start using GnuCash for a company I set up several years ago. The
> company has some assets - mainly electronic test equipment. Let’s
> hypothetically assume
>
> VNA £1000
> Signal generator £500
> Frequency counter £250
> Calibration kit £2000
>
> Total is £3750
>
>
> Is there a way of entering the individual items into GnuCash? I realise
> that I can create an account
>
> Assets -> Test equipment
>
> with an opening balance of £3750, but that doesn’t itemise individual
> items.
>
> It would be a bit tedious to create accounts for every item individually
>
> Assets -> Test equipment -> VNA
> Assets -> Test equipment -> Signal generator
> Assets -> Test equipment -> Frequency counter
>
> and set each to have an appropriate opening balance.

Normally under "assets" one might have a number of high level 
sub-accounts. For example "current assets" (cash and cash equivalents, 
bank accounts, A/R (could  be "factored), negotiable instruments, etc. 
Then there might be "inventory" if the business bought and sold widgets. 
But the sub-category you are asking about is "fixed assets". HOW you 
subdivide further probably best dictated by how you depreciate them and 
I haven't a clue about "depreciation" rules in the UK.

a) If your gnucash books already exist I would create the accounts with 
zero balance and add the current BOOK VALUE* with a transaction.

b) HERE I would need to know the year purchased, original basis, and 
total depreciated so far. For that reason I probably would have 
assets:fixed assets:test equipment: (and then each because the 
depreciation history for each likely different.

I will stop here because you aren't so much asking a gnucash question as 
a "fundamentals of accounting" question and you need to look up 
"accounting for/depreciating the fixed assets of a business" and 
"adjustments upon disposal of a fixed asset" in accordance with the 
rules of your jurisdiction. In other words, THAT would be the same as in 
the old days of keeping you books by hand pen and ink on paper.  Those 
rules will affect your choices with regard to "keep all together" vs 
"have each separate", etc.

Michael D Novack