Question

What is the journal entry to book depreciation if the total depreciation for the year was $30000?

Answer 1

Journal Entry for recording of depreciation:

Particular	Dr ($)	Cr ($)
Depreciation Expense Account - Dr	$       30,000
To Accumulated Depreciation Account		$       30,000

Explanation:

Depreciation is an expense & Expenses has debit balance; thus debit to Depreciation expense account so that expense will increase.

Accumulated Depreciation has credit balance & Fixed Asset account has Debit balance.

Amount in Accumulated Depreciation is accumulated over the years till it reaches to cost of the asset.

Thus, When we compared both Accumulated Depreciation & Fixed Asset account we will get Net asset amount ( i.e Asset - Depreciation)