At end of year what do I do with accumulated depreciation?

Question

Apr 7, 2007, 06:57 AM

ray1234

New Member

Join Date: Apr 2007

Posts: 1

At end of year what do I do with accumulated depreciation?

At the end of the year what do I do with the Accumulated Depreciation Account?

Answers

Apr 7, 2007, 01:20 PM	#2

CaptainForest

Finance & Accounting Expert

Join Date: Nov 2005

Location: Canada

Posts: 3,672

What do you mean what do you do with it?

When you add depreciation of an asset, you will debt an expense, and credit that account.

The account never closes, and will appear right alongside its asset on the balance sheet to offset it.

For example, your Balance Sheet might look like this:

Current Assets
Cash 100
AR 50
Supplies 10
Total Current Assets 200

Fixed Assets
Equipment 300
Less: Accumulated Amortization 150
Total Fixed Assets 150

Total Assets 350

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