Recording Depreciation

NotesQuizCBE

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.

NotesQuizCBE