When you purchase a fixed asset, create a dedicated account in the Chart of Accounts under the Fixed Asset sub-type. Post the purchase by debiting this account and crediting your bank or a loan payable account. If the asset has multiple components (such as a server with separate hardware and installation costs), you can either capitalise both or expense the installation depending on your accounting policy and the materiality of the amount.
For each fixed asset account, create a corresponding “Accumulated Depreciation” contra-asset account. The Balance Sheet will show the asset at gross cost minus accumulated depreciation, giving the net book value.
Zoho Books does not have a built-in fixed asset register, but you can maintain one by creating a separate account for each asset category (or individual high-value asset) and tracking depreciation through recurring journal entries. Many Zoho Books users supplement this with a spreadsheet that records asset name, purchase date, cost, useful life, depreciation method, and current net book value.
When you sell or scrap a fixed asset, you need to remove it from the books. Debit the Accumulated Depreciation account for the total depreciation posted to date, credit the Fixed Asset account for the original cost, debit or credit your bank for the sale proceeds, and post any resulting gain or loss to an “Gain on Asset Sale” or “Loss on Asset Disposal” income or expense account. This keeps the Balance Sheet clean and the P&L accurate.
A fixed asset in Zoho Books is a long-term tangible resource owned by your business, such as machinery, computers, vehicles, or office furniture, recorded on the Balance Sheet under Fixed Assets and depreciated over its useful life.
Create an account of type Fixed Asset in the Chart of Accounts. When you purchase the asset, post the purchase to this account via a journal entry or vendor bill. Then create an associated Accumulated Depreciation contra-account and set up a recurring journal entry for monthly depreciation.
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