What is depreciation entry

Question

Accepted Answer

Depreciation entry is a journal entry made to record the decrease in value of an asset over time.

Depreciation entry is recorded in the general ledger to reflect the reduction in the value of an asset.
It involves debiting the depreciation expense account and crediting the accumulated depreciation account.
Depreciation entry is typically made at the end of an accounting period.
The amount of depreciation is calculated based on the asset's useful life and salvage value.
Example: If a company purchases a vehicle for $20,000 with a useful life of 5 years and no salvage value, the annual depreciation expense would be $4,000 ($20,000 / 5).

Accepted Answer

Depreciation a/c cr.

To asset a/c cr.

Accepted Answer

Depreciation ac Dr.

To asset ac

Accepted Answer

Depreciation ac Dr.

To asset ac

Profit and loss ac Dr .

To depreciation ac

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