Accumulated Depreciation Debit or Credit
And credit Machines for 50000. But we have calculated the depreciation taking 500000 as the resale value. Accounting Basics Accounting Basics Accounting Learn Accounting So now what to do. . On April 1 2012 company X purchased a piece of equipment for Rs. Thus after five years accumulated depreciation would total 16000. When we add the balances of these two assets we will get the net book value or carrying value of the assets having a debit balance. Example of How to Eliminate Accumulated Depreciation. Definition explanation examples and application of the rules of debit and credit. This entry debits 400 to Depreciation Expense and credits 400 to Accumulated Depreciation. Credit the increase in liability Debit the decrease in liability. Accumulated depreciation is said to be as a Contra Account since it carries a credit balance also it is associated with the assets that carry debit balances. For example Ha