banner_ad

Depreciation & accumulated depreciation

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
12 May 2013 Dear sir,i need clarification regarding depreciation and accumulated depreciation.accumulated depreciation is a contra asset.but i dont understand contra asset.pls tell me about depreciation and accumulated depreciation with examples include journal entries.regards,vijay.
Profile Image

CA Sourabh Agarwal

Profile Image

CA Sourabh Agarwal (Expert)
12 May 2013 Entry without Acc. Dep.

Dr. Depreciation
Cr. Asset (Asset Group)

Entry with Acc. Dep.

Dr. Depreciation
Cr. Acc. Dep. (Liability Group)

You can see that asset is not reduced rather a liability is raised on opposite side. That's why some people call it as contra asset.

Accumulated Dep. is shown as reduction to Historical cost of asset in Balance Sheet thereby resulting same net effect.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
14 May 2026
Senior Accounts Executive

Karan Gupta & Co.

New Delhi

Graduate (Any)

View Details
Company
11 May 2026
AUDIT INTERN

M/S K.K.KHANNA AND COMPANY

Noida

CA Foundation

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details