What is the Journal Entry for Asset Depreciation?

What is the Journal Entry for Asset Depreciation?

Reduction in value of tangible fixed assets due to normal usage, wear and tear, new technology or unfavorable market conditions is called Depreciation. Journal entry for depreciation depends on whether the provision for depreciation/accumulated depreciation account is maintained or not.

Assets such as plant and machinery, buildings, vehicles etc. which are expected to last more than one year, but not for an infinite number of years are subject to depreciation. Below journal entry for depreciation assumes that depreciation is charged directly to the asset account.

Journal entry for depreciation (For each asset separate entry should be passed).

To Pass Journal Entry Login to ADDA >> Admin >> General Ledger >>Journal entries.

DebitCredit
Depreciation A/CAsset A/C


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