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Accounting questions?
Accounting questions?
Ok, i was little bit confused about when u write off equipment
For example:
lets say i bought a machine, for 100$, i would ,debit equipment and credit cash, then after some time the machine got depreciated with no salvage value, so at this point i would write, Accumilated dep. debit this 100 and credit equipment for 100, but how does the expenss register????? i though acum dep. is a contra asset account, not and expense account, or is it?
Answers:
Chosen Answer
just_the_facts_ma'am: Accumulated depreciation is a contra asset account.
When you record depreciation, you debit expense and credit accumulated depreciation. The equipment account is not affected.
2007-11-18 19:51:13
just_the_facts_ma'am: Accumulated depreciation is a contra asset account.
When you record depreciation, you debit expense and credit accumulated depreciation. The equipment account is not affected.
2007-11-18 19:51:13
expletive_xom: you wouldn't credit equipment for $100.
you would credit accumulated depreciation for 100 and debit depreciation expense for 100.
accum-depr-machines/equipment is the contra asset account, so it will never be more than the equipment account. they would both just grow be considered to offset each other. and you get to expense the expense portion annually, while keeping track of what you have left.
2007-11-18 19:54:27
you would credit accumulated depreciation for 100 and debit depreciation expense for 100.
accum-depr-machines/equipment is the contra asset account, so it will never be more than the equipment account. they would both just grow be considered to offset each other. and you get to expense the expense portion annually, while keeping track of what you have left.
2007-11-18 19:54:27
krishbhavara: Dr. Asset
Cr. Cash
While charging the depreciation
Dr. P/l
Cr. Acc. Depr
While scrapping the asset
Dr. Acc. Depr
Cr. Asset
http://futureaccountant.com/
2007-11-21 00:56:49
Cr. Cash
While charging the depreciation
Dr. P/l
Cr. Acc. Depr
While scrapping the asset
Dr. Acc. Depr
Cr. Asset
http://futureaccountant.com/
2007-11-21 00:56:49