answersLogoWhite

0

Yes, but it also appears on the balance sheet. When depreciation is posted in the accounts, the double entry is Dr Depreciation (IS) and Cr Accumulated Depreciation (BS). The IS account takes the debit side as an expense, while the balance sheet takes the credit side which offsets against purchase cost of the asset, thereby reducing the net book value by the same amount.

User Avatar

Wiki User

9y ago

What else can I help you with?

Related Questions

Is depreciation included in a contribution income statement?

Yes depreciation is included in contribution income statement as depreciation is part of fixed cost of company.


Is it correct to include depreciation of disposed of asset in income statement?

Depreciation of any asset is charged to income statement till the actual date of disposal of asset and after that date depreciation is not charged to income statement.


Where does accumulated depreciation go on a multiple step income statement?

accumulated depreciation is a part of financial statement while its counteract or effect is recorded into income statement as a Depreciation Expense.


Accumulated Depreciation is reported on the income statement?

Accumulated Depreciation is reported on the balance sheetbecause it deals with the assets. However, depreciation expense is mentioned on the income statement.


Is Accumulated Depreciation is reported on the income statement?

Accumulated Depreciation is reported on the balance sheetbecause it deals with the assets. However, depreciation expense is mentioned on the income statement.


Why organisations need to recognize depreciation expense in the income statement?

Explain the concept of depreciation and why organisations need to recognise deprecations expense in the Income Statement.


For income statement purposes depreciation is a variable expense if the depreciation method is?

Units-of-production


What does a budgeted income statement consist of?

budgeted depreciation


Is depreciation on an income statement?

Yes depreciation is part of income statement which is used to allocate the portion of cost of fixed assets to fiscal year in which that fixed asset is used.


Fixed asset depreciation schedule?

Fixed asset depreciation schedule shows the calculation of yearly depreciation expense which is scheduled to be charged to income statement for all fixed assets and the total amount of depreciation applicable to specific income statement of business.


Depreciation expense appears on what financial statement?

Income Statement


How do you double entry on depreciation?

DR. DEPRECIATION EXPENSE X CR. ASSET X At the end of the year Depreciation is charged to the Income Statement.

Trending Questions
What is Importance of vouchers in accounting for business performance? What is w12 form? Is Electricity for resale an asset? What can you do if you do not get paid on time you had to get paid today but you did not where can you go to complain? Is it public record what a business owes in back taxes? Do unions pay taxes? What is the formula for calculating standard allowed minutes for determining apparel production costs? Which of the following accounts would not be debited in the process of preparing closing entries for Bargain World Inc? The accounts that you discharged in bankruptcy should no longer show on your credit report after 1 year? What does it mean when something has an ad valorem tax? Why a business should record depreciation in the annual account? Is depreciation expense listed on a balance sheet? Can federal tax on an annuity be deducted on your federal tax return? Is it true when using the allowance method of accounting for uncollectible accounts the entry to record the bad debt's expense's is a debit to Bad Debts Expense and a credit to Account's Receivable.? What are the uses of control accounts? Irs holding refund for 60 days? What method are most companies least likely to use to record the number of hours their employees work? How long will it take to receive your federal refund check from the IRS? How do I set up an online bill pay system for my retail website? If a person has a check dated on 1-4-2012 for 1000 dollars can we say that he has 1000 in his pocket now?