Accumulated Depreciation is a contra-asset account. It is included with assets on the trial balance and Balance Sheet, however, it has a normal credit balance.
[Debit] Depreciation account [Credit] Accumulated depreciation
Accumulated Depriciated account is kept mostly for TAX purposes but also gives you face value of your assets.
No. Accumulated depreciation is depreciation accumulated every year and it will only increase and won't decrease. Depreciation expenses is incurred every year.
No. Accumulated Depreciation is a contra-account which appears on the asset side of the Balance Sheet. It is a credit balance account which reduces the value of Fixed Assets to reflect their declining value due to age and use. The normal offset to an entry to the Accumulated Depreciation account is a debit to Depreciation Expense.
Accumulated Depreciation
Contra assets are asset accounts with creditbalances. (A credit balance in an asset account is contrary-or contra-to an asset account's usual debit balance.) Examples of contra asset accounts include: * Allowance for Doubtful Accounts * Accumulated Depreciation-Land Improvements * Accumulated Depreciation-Buildings * Accumulated Depreciation-Equipment * Accumulated Depletion * Etc. source: http://www.accountingcoach.com/online-accounting-course/05Xpg01.html -- amir
The accumulated deprecation is the all the depreciation amounts should be the accumulated depreciation.
[Debit] Depreciation account [Credit] Accumulated depreciation
Accumulated Depriciated account is kept mostly for TAX purposes but also gives you face value of your assets.
is accumulated depreciation a contra account
No. It is a contra asset account
Accumulated depreciation is a contra-asset account and show in the asset section of the Balance Sheet. It is called contra-asset account because contrary to any asset account Acc. Dep. is a credit type of account. The offset of Accumulated depreciation is to Debit the expense account Depreciation.
No. Accumulated depreciation is depreciation accumulated every year and it will only increase and won't decrease. Depreciation expenses is incurred every year.
No. Accumulated Depreciation is a contra-account which appears on the asset side of the Balance Sheet. It is a credit balance account which reduces the value of Fixed Assets to reflect their declining value due to age and use. The normal offset to an entry to the Accumulated Depreciation account is a debit to Depreciation Expense.
Accumulated Depreciation
Yes
Accumulated Depreciation