What is accumulated depreciation?

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gayatri bajpai

  • Nov 30th, 2006
 

Hi,

I am gayatri. In my opinion accumulated depreciation is the amount of depriciation from day one to till date on an asset. In other words it is the total of depriciation given on fixed asset from its date of purchase.

Gross amt-accumulated depriciation = Net value of asset

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Ramesh

  • Nov 30th, 2006
 

Accumulated depreciation is the write-down of an asset's carrying amount on the balance sheet due to loss of value from usage and age

with regards

Ramesh.S

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Ahsan

  • Feb 13th, 2007
 

Accumulated depreciation is contra account in Assets section of Balance sheet. That means, assets normally have debit balance but Accumulated depreciation has credit balance. This is a unique type of account and it serves the purpose of showing the viewers the original amount of assets and the resulting depreciation on those assets. Acc dep is also an ingredient in depreciation journal entry. Where Depreciation expese is debited and acc dep is credited.

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murali krishna

  • Apr 5th, 2007
 

This is the depreciation same like as normal depreciation but won't deduct from the asset account. we create another special account named Accumulated Depreciation Account. when the asset value comes until 0 then these two accounts will be closed.

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vaishnavi

  • Aug 24th, 2007
 

Accumulated depreciation is the depreciation where the depreciation amounts gets accumulated & at the end it will be deducted from the concerned assets.

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