Derecognition: which account to use against bank reconciliation, capital?

[of...@nym.hush.com]

Dear List,

has someone know how that works?

Kind regards,

Re: Derecognition: which account to use against bank reconciliation, capital?

[Sharan-F <sh...@gmail.com>]

Hi 

I'm not sure what you're asking about as there seem to be a few topics mixed
here.
*
Which Accounts to Use*
The demo chart of accounts is setup as a guide. It is quite comprehensive
though tends to favour the US system. Depending on which country you are in
– you can load your own accounts for that country.  (An accountant should be
able to help you identify which accounts you need.)
*
Bank Reconciliation*
There are a couple of ways for you to handle it. 
1. You can just use a GL account that represents your bank account and
manage the transactions coming in and going out
2. You can setup a Financial Account to represent your bank account and this
can be linked to the GL account that represents your bank account. The
Financial Account functionality includes reconciliation so that you can
balance against any bank statements you receive (e.g. at the end of the
month)

*Derecognition*
By this I'm guessing that you mean that you've had an asset of some type,
that has been depreciated and at some point you want either 'it be written
off' or no longer seen as an asset. If its just about being written off then
the standard depreciation flow and accounts should work for you.

If its being transferred out of being an asset part way through its life
then the adjustment transactions you make depend on the asset itself and the
impact of the status change.

I hope this helps.

Thanks
Sharan



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