ACCA FA Syllabus D. Recording Transactions And Events - Recording Depreciation - Notes 4 / 5
Depreciation expense and accumulated depreciation are recorded in ledger accounts
Depreciation has a dual effect which needs to be accounted for
It reduces the value of the asset in the statement of financial position.
It is an expense in the statement of profit or loss.
The double-entry for depreciation is:
Dr Depreciation expense (I/S)
Cr Accumulated Depreciation (SOFP)
with the depreciation charge for the period.
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Syllabus D. Recording Transactions And Events
D5. Depreciation
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Syllabus D. Recording Transactions And Events
D5. Depreciation