I know account Fixed Assets - Buildings. Where is recorded initial value of building (purchase price and costs related to purchase).
Then is account Accumulated depreciation. Where is accumulated depreciation of each year until it is equal to value of Buildings.
But what is Depreciated Buildings? Is this account to record buildings that are already depreciated? If, yes, then why? and what value? Value must be 0, if fixed asset is depreciated.
Depreciation is to charge a proportion of the cost of the asset on an fair and reasonable basis to the profit and loss account each year. Adjustment each year is
Dr Depreciation (P&L)
Cr Depreciation (BS)
So each year a proportion of the asset is charged to the profit and loss ac and an equal amount charged to the balance sheet reducing the value of the asset.
Though for something like property that if anything is likely to increase in value rather than reduce i would be inclined not to depreciate and if you do to depreciate by a small amount, say 1 or 2% each year.
Here is Chart of accounts http://www.powertoolssoftware.com/QBManualChartofAccounts.html And such account - 1940 Depreciated Buildings I do not understand what does it mean....
Appears just to be the account you would post any depreciation re Buildings to in the year. (looks like the depreciation brought forward (accumulated) and the depreciation posted in the year are posted to separate accounts rather than just to one.)
Its other group accounts are
1840 Office/Shop Buildings Cost
1890 Accumulated Dep - Buildings (this will be the accumulated depreciation brought forward on fixed assets.
