Accumulated Depreciation

ivory5130 · #1 Jul 5, 2007, 08:45 PM

When journalizing after a company just purchases a piece of machinery, do you use accumulated depreciation or something else?

bhet · Jul 6, 2007, 01:20 AM

you always use accumulated depreciation account to allocte the cost of your machinery.

maheshwari · Jul 6, 2007, 10:01 AM

Quote:

Originally Posted by ivory5130

When journalizing after a company just purchases a piece of machinery, do you use accumulated depreciation or something else?

Yes as per accounting standard - 6 (Depreciation) it is complusory to provide Dep. , while the case of accumulated dep. depends and differs from company to company



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