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for accumulation depreciation accounts, if they're an asset account then why does it have a normal...

for accumulation depreciation accounts, if they're an asset account then why does it have a normal credit balance? (or is it a normal debit balance)

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Answer #1

Accumulated depreciation is the total depreciation for a fixed asset that has been charged to expense since that asset was acquired and made available for use. The accumulated depreciation account is an asset account with a credit balance (also known as a contra asset account). It appears on the balance sheet as a reduction from the gross amount of fixed assets reported.

Thus it has a normal credit balance and shown as a reduction from the gross amount of fixed assets.

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