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Can depreciation on a Fixed Asset be carried as a contra-asset on its own line on the balance sheet or does it have to be deducted from the Fixed Asset?
Wiki User
∙ 15y ago
Depreciation of a Fixed Asset is always carried on the Balance Sheet in the Accumulated Depreciation Account (contra-asset). It is never deducted from the Fixed Asset.
One reason for the Accumulated Depreciation account is that eventually, individual assets will be fully depreciated and their net values will be zero. If the depreciation were deducted from the asset, it would "fall off" the balance sheet. The accumulated depreciation account allows the assets to remain at book value in the asset account to maintain their visual presence on the books.
The depreciation entry debits depreciation expense and credits accumulated depreciation.
Wiki User
∙ 15y ago
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On what statement does owner's drawing account go?
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What is the Purpose of Post-Closing Trial Balance?
The purpose of the post-closing trial balance is to prove the equality of the balance sheet account balances that are carried forward into the next accounting period.
Purpose of the post- closing trial balance?
The purpose of the post-closing trial balance is to prove the equality of the balance sheet account balances that are carried forward into the next accounting period.
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The front wheels of a lift truck serve as what between the weight of the truck and the weight of the load being carried?
Fulcrum Point
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How do you make a trial balance from T Accounts?
You would add up both columns on the T account and put the highest figure as the total for BOTH columns. Then in the column which was less you add a balancing figure call Balance Carried Forward to make that column match the other. Below the totals you would put Balance Brought Foward which is the same as the balance carried forward but it should go on the other side. You then list all the Balance Brought Fowards figures, keeping them in their debit or credit side. That list becomes the trial balance.
Sara had a previous balance of 449.13 carried over from last month's credit card bill The credit card company assessed a 6.74 finance charge What is Sara's new balance?
455.87
The front wheels of a lift truck serve as the between the weight of the truck and the weight of the load being carried?
balance point
Need to deduct one column from another to show the balance available but this balance has to be shown in the deducted column to show that the two columns are equal?
Sounds like you are trying to balance off a T-account.The easiest way to do this is:Sum the debit and credit columns separately;Take the smaller sum from the larger sum to find the balance;Put this balance in the column with the smaller sum with description "Balance c/d";The two columns now total the larger sum (found in step 1), so write this as the total for each of the columns;Under the total in the column which originally had the larger sum write the balance (found in step 2) with description "Balance b/d".If there is a zero balance found in step 2, there is no balance carried down, the t-account already balances and no figures other than the total need be written. However, if you want to have an opening balance written, then put the "balance c/d" in the opposite column to the type of balance the account normally has (eg an asset account normally has a debit balance, so the balance c/d (of 0) would go in the credit column) above the totals and the "balance b/d" goes in the normal column (eg for an asset account this would be in the debit column) under the totals.
