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Which Account is Credited When Depreciation is Charged on Asset? - Effects of Adjustments-Depreciation

Which account is credited when depreciation is charged on asset?

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Solution

When depreciation is charged on asset, asset account is credited.  The following is the Journal entry for charging depreciation on asset.

Journal

Date Particulars L.F. Debit
Amount
(Rs)
Credit
Amount
(Rs)
  Depreciation A/c Dr.      
     To Asset A/c      
  (Depreciation charged on asset)      

Depreciation being an expense for the firm is debited (increase in expenses) and asset is credited to record the fall in the value of asset (decrease in the value of asset).

Concept: Effects of Adjustments-Depreciation
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