Q&A: In bookkeeping, double entry accrual method, what do you do when...?

Question by Aces: In bookkeeping, double entry accrual method, what do you do when...?
....a temporary asset that was debitted as an asset such as office supplies, runs out? How do you keep your books straight on the credit column if the asset is now gone and is not really part of your assets anymore? Do you credit the amount $ $ $ of office supplies you initially had entered for that asset and debit under the same account as gone? Thank you so much for your help as I am learning from a beginner tutorial how to bookkeep... ' >


Answer
Answer by Mrs. CIt should have been posted to an expense account, not an asset account. Credit the full amount to the asset account and debit the expense account. Office Supplies is a very typical expense account. When it was originally purchase the entry would have been a credit to cash and a debit to office supplies. If it was purchased on account or on a credit card, the entry would be a credit to accounts payable and a debit to office

Corporate Finance