Deleting an Asset, but keeping the transactions
I'd appreciate someone's opinion on how I should handle eliminating 3 assets, but I want to keep the transactions that made up the asset balance. I have been a Quicken user since 1995, and usually I figure something out (accounting classes in college), but this has me stumped.
Years ago, we bought 3 timeshares. We paid them off over time, and I made the mistake of listing each one as an asset, instead of expensing every transaction. A couple of years ago, we managed to get of the timeshares. I want to delete them as an asset (how do I do that, never done that before) but I want to keep the transactions, because if delete the asset I'm afraid I will delete the transactions, and that will throw off my checking transactions for each year.
Am I explaining what I'm trying to do?
Years ago, we bought 3 timeshares. We paid them off over time, and I made the mistake of listing each one as an asset, instead of expensing every transaction. A couple of years ago, we managed to get of the timeshares. I want to delete them as an asset (how do I do that, never done that before) but I want to keep the transactions, because if delete the asset I'm afraid I will delete the transactions, and that will throw off my checking transactions for each year.
Am I explaining what I'm trying to do?
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Best Answer
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Rather than delete the asset, I would suggest reducing that assets value to zero. You can then hide it. This will give you ability to review any transactions and not have the "value" skew your net worth. If you've not reduced assets before, you make an entry in the asset account for the amount you want to reduce the asset by, in your case the entire amount. The category goes to the same asset account.You can apply this same method for assets you want to depreciate.
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Answers
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Rather than delete the asset, I would suggest reducing that assets value to zero. You can then hide it. This will give you ability to review any transactions and not have the "value" skew your net worth. If you've not reduced assets before, you make an entry in the asset account for the amount you want to reduce the asset by, in your case the entire amount. The category goes to the same asset account.You can apply this same method for assets you want to depreciate.
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GeoffG thanks for your quick response. I've thought about reducing the asset value, but then wouldn't I have to increase something else? I'm thinking of my double entry accounting days.Say, Timeshare A I have listed as an asset with a value of $5000. I reduce it by $5,000, but isn't there another entry I have to make too?0
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GeoffG thanks for your quick response. I've thought about reducing the asset value, but then wouldn't I have to increase something else? I'm thinking of my double entry accounting days.
My suggestion is to record a Transfer to/from the account itself.
To reduce the value of an asset by $5,000 - enter a transaction in the asset account with a value of -$5,000 (negative) and for the category, enter [<acct name>]. This $5,000 simply disappears - no expense (or income) and no cash flow.
I typically use this type of transaction to record appreciation (or depreciation) of my home value or to record depreciation of an automobile.
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