Question

Journal entry for depreciation paid​

Answer 1

Answer:

Depreciation is a non-cash expense which means that it is not actually paid for. It is however considered an expense which reduces the value of fixed assets as the years go by.

Journal entry for depreciation is:

Date                   Account title                                             Debit           Credit

XX-XX-XXX       Depreciation Expense                            XXXX

                          Accumulated Depreciation                                        XXXXX

The Depreciation expense for the year is debited to the Depreciation expense account and deducted from income in the income statement.

The amount is then credited to an Accumulated depreciation account which shows total depreciation since the asset was acquired. This goes to the balance sheet and reduces the value of fixed assets.