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    ray1234's Avatar
    ray1234 Posts: 1, Reputation: 1
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    #1

    Apr 7, 2007, 06:57 AM
    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?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Apr 7, 2007, 01:20 PM
    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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