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The normal balance of the accumulated depreciation account is debit?
Wiki User
∙ 12y ago
False. Normal Credit Balance.
Wiki User
∙ 12y ago
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What is the normal balance of accumulated depreciation?
the normal balance of accumulated depreciation is "credit"
The vat output account has a debit balance or a credit balance?
normal balance of output VAT
Purchase Return and Allowances is a contra account and its normal balance would be?
a debit and credit
What does it mean if an account has an exceptional balance?
From the grade 11 text book, occassionally an account that would normally have a debit balance, ends up having a credit balance or vise versa not because of a mistake. There is a reason the account ends up with opposit of the normal, for example, if you over pay an account payable, or a customer returns unsatisfactory merchandise for credit.
How is common stock dividends distributable classified?
Common stock dividends distributable is an equity account and it has a normal credit balance. It is added to capital stock on the balance sheet.
What is the normal balance of accumulated depreciation?
the normal balance of accumulated depreciation is "credit"
The type of account and normal balance of accumulated depreciation is?
contra asset account, credit balance
Accumulated depreciation debit or credit?
Accumulated depreciation is a contra account for specific fixed asset so fixed assets has debit balance as normal balance so accumulated depreciation has credit balance as default balance.
Is Accumulated depreciation account is an expense account?
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.
What kind of account is accumulated depletion?
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.
The Accumulated Depreciation's account balance is the sum of depreciation expense recorded in past periods true or false?
Yes. Accumulated depreciation is a contra asset account, which means it has an opposite balance from a normal asset account. It is used to reduce the balance whatever asset you are deprecating. When you total your assets on the balance sheet, you deduct the cost of Accumulated depreciation from your assets to get the true worth of your assets.
What kind of account is linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account?
The account you are asking about is called a contra account. One example of a contra account is "Accumulated Depreciation." Accumulated Depreciation (or A/D for short) is grouped with fixed asset accounts on the balance sheet. The normal balance for A/D is a credit, while all other asset accounts (besides other contra accounts) have a normal debit balance. The credit balance in A/D is netted with the debit balance in fixed assets to determine the net book value (NBV) of the fixed assets.
Why accumulated depreciation is recorded in the asset of balance sheet instead of recording in the liabilities side?
it is a contra asset (negative) hence that's why it is shown as decreasing amt on the balance sheet. In other words, the contra account of any given account is of the same type. So, the contra of a fixed-asset account is also a fixed asset account but with the opposite normal balance. That's why depreciation is in the asset section.
Where does Accumulated Depreciation appear?
Accumulated depreciation is a contra asset account. So it goes with the assets but works in reverse from normal assets. So the debit side won't be increases, but rather decreases. And the credit side will be the increases. And it will be grouped with the fixed asset that's being depreciated. This way, you'll be able to see the original value and all the depreciation that's been taken.
What is depreciation expense?
normal balance of debit
What is the normal balance of a withdrawal?
Drawings account has a normal balance as a reverse of owners equity account which is debit balance as a normal balance.
What is the normal account balance of Income Summary?
It has no normal balance.
