CIMA BA3 Syllabus B. RECORDING ACCOUNTING TRANSACTIONS - Recording Depreciation - Notes ^{23 / 35}

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.