Depreciation entry

Depreciation is in the nature of nominal account, For ex. while posting the entry for depreciation on computer

Depreciation A/c Dr

         To Computer A/c

Because depreciation is non monetory expenses & it is nominal account, its accounting rule is "debit all Expenses & Losses Credit all incomes & gains". Depreciation is an expense so we have to debit it.

Computer is in the nature of real a/c, its rule is "Debit what comes in Credit what goes out". When reduction in the Value of asset we have to credit it th e asset A/c.