# Payslip amount on balance sheet in employee clearing account & equity-retained earnings

**URL:** <https://forum.manager.io/t/payslip-amount-on-balance-sheet-in-employee-clearing-account-equity-retained-earnings/7661>\
**Category:** Uncategorized\
**Created:** [November 12, 2016, 4:51am UTC](https://forum.manager.io/t/payslip-amount-on-balance-sheet-in-employee-clearing-account-equity-retained-earnings/7661 "2016-11-12T04:51:39Z")\
**Posts on this page:** 1\
**Showing post:** 24

<div class="post-metadata">

**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\
**Post date:** [November 22, 2016, 4:36am UTC](https://forum.manager.io/t/payslip-amount-on-balance-sheet-in-employee-clearing-account-equity-retained-earnings/7661/24 "2016-11-22T04:36:19Z")

</div>

First, if you had this edgebander when you started using Manager, you probably should have set it up as a fixed asset. See:

> [@Purchasing fixed asset](https://forum.manager.io/t/purchasing-fixed-asset/5504):
>
> To enter a fixed asset you purchased, firstly you need to create the fixed asset. Go to Fixed Assets tab. Click New Fixed Asset button. Enter details of the fixed asset. Click Create button. Once you create the fixed asset, you will notice the purchase cost is zero. This is because under double-entry accounting you cannot simply enter the purchase cost without entering the actual purchase or payment transaction. Purchase of the fixed asset can be recorded under following tabs: Cash Account…

That Guide includes some discussion about loans, as well.

Interest paid on the loan is an expense. Principal payments are posted to the loan liability account. Both the principal and the interest portions of the loan payments are handled from `Spend money` in a cash account as separate line items. They are equivalent to debits, offsetting the credit against the cash account.

Depreciation on the fixed asset is also an expense. See this Guide:

> [@Depreciating fixed asset](https://forum.manager.io/t/depreciating-fixed-asset/5505):
>
> To depreciate a fixed asset, go to the Fixed Assets tab. Click on the figure in the Accumulated Depreciation column. This will transfer you to the depreciation register for the selected asset. You can now use the New Depreciation Entry button to enter the depreciation expense amount.

The procedure is equivalent to debiting depreciation expense and crediting `Fixed assets - depreciation` (a contra asset account).

---

_[View the full topic](https://forum.manager.io/t/payslip-amount-on-balance-sheet-in-employee-clearing-account-equity-retained-earnings/7661)._