There are two main entries for this account: Let's say we have a Truck we want to depreciate for the amount of $500, the entry is pretty straight forward.
Depreciation Expense (debit) $500
Accumulated Depreciation - Truck (credit) $500
Depriciation A/c Dr. XXX
To Machinery A/c XXX
debit depreciation
credit asset account
Debit depreciation expense
Credit fixed asset
debit depreciation
credit asset / accumulated depreciation
debit depreciation
credit machinery
debit depreciation
credit assets
Depreciation a/c Dr.
To Assets a/c
1 - General journal entry2 - Adjusting journal entry3 - Month end adjusting entry
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According to my understanding and my study in accounting, the reversal of journal entry merely is for the opening balances for a new year of accounting period
Journal entry is the first record in books of accounts which shows any business transaction that occurred in past and it is also called "original entry" which provides basis for all other reports and statements.
the information is entered in the general journal, which is called the book of original entry.
[Debit] Depreciation account [Credit] Accumulated depreciation
[Debit] Depreciation account [Credit] Asset account
Debit depreciation expenseCredit fixed asset
debit depreciationcredit cash
[Debit] Depreciation Account [Credit] Assets Account
Debit depreciation expenseCredit asset account
Debit is to depreciation expense.
Journal Entry for an Auto Depreciation is as follows: [Debit] Depreciation Expense xxxx [Credit] Auto Asset xxxx Another way is as follows: 1 - [Debit] Depreciation Expense xxxx [Credit] Accum. Depreciation xxxx 2 - [Debit] Accum. Depreciation xxxx [Credit] Auto Asset xxxx
Journal entry is required for depreciation in quickbooks as well as FAS for peachtree also can be used to automatically record depreciation entries
Missing depreciation will increase the profit while reduce the expenses in the year in which depreciation is missing.
Debit depreciation expensesCredit leasehold improvement
Yes journal entry to adjust the depreciation charge is required while shifting from one method to another method.