Question

Accumulated Depreciation is a (an) ------------------- account. The normal balance of this account is a -------------------.

Accumulated Depreciation is a (an) ------------------- account. The normal balance of this account is a -------------------.

Homework Answers

Answer #1
Accumulated Depreciation is a (an)Contra asset account .The normal balance of this account is a credit Balance.
Explanation:
1 Accumulated Depreciation is a contra asset it means reduces a regular asset.For example Fixed Asset.
2 Gross Fixed asset less accumulated depreciation is the net fixed asset.
3 The normal balance of the account is a Credit balance.
4 Asset have a normal debit balance & accumulated depreciation have a normal credit balance.
5 Accumulated Depreciation should be a credit balance as it is a contra - asset account.
6 General entry is :
Depreciation expenses a/c debit
Accumulated Depreciation a/c credit
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