What is Accumulated Depreciation? Why Accumulated show in balance Sheet ? Rathe then the Depreciation of Current year is Show in Profit and loss Statement

Accumulated depreciation is the total loss of value that an object has suffered. For instance if a car is worth 20,000 at purchase and it depreciates 20% a year (real depreciations are not a fixed value but I will use 20% percent as an example). In the first year the car will depreciate 4,000 dollars, the second year it will depreciate 3,200 dollars and the third year it will depreciate 2,560 dollars. But the accumulative depreciation after three years is 9,760 dollars, just under 50% of the original value.

Please review the guidelines on asking for help with homework that can be found here:



Ask Me Help Desk - Announcements in Forum : Arts & Literature (https://www.askmehelpdesk.com/arts-literature/announcement-u-b-read-first-expectations-homework-help-board-b-u.html)

Aside to Answer_guru.

I've always found it a good idea to browse around a bit before jumpiing and posting. Especially if you are planning on answering questions. So far you have committed 4 faux pas here. Two of your posts were removed because they were replies to thread two and three years old. In this one you ignore the site guidelines about answering homework questions. Finally, the name you chose may be offensive to others because it constitutes bragging. Most of the people who answer questions here have earned their reputations over time by providing high quality answers.

Everyone is welcome to contribute here and, so far, I have no problem with the quality of your responses, just the fact that you didn't seem to bother to learn how this site operates. I suggest your next stop should be the Introductions forum where you can tell us a bit about yourself.

What is Accumulated Depreciation? Why Accumulated show in balance Sheet ? rathe then the Depreciation of Current year is Show in Profit and loss Statement

I'm not convinced this was a homework question. Because of the statement "why accumulated shown in the balance sheet rather than the depreciation of current year on the P&L." That implies that one thing is correct and the other one is wrong. But the depreciation for the current year is on the P&L. So it's like a false statement and homework wouldn't ask a false statement like that. (Or, of course, it could have been copied incorrectly from the problem.)

Accumulated depreciation is on the balance sheet. But the current depreciation is on the income statement in the form of an expense. They both exists. So it's not one versus the other.

The entry involves the current year's number only, which goes both into the expense account and into the accumulated depreciation account. All expenses get closed out at the end of the year and start over at zero for a new year. So anything going into an expense account applies to the current year only and does not carry through to future years.

Accumulated depreciation, on the other hand, is a contra asset account. It does what it says: accumulates. Balance sheet accounts don't close out, but rather the balances are carried through into the next year. Since the balance in accumulated depreciation stays, when the next year rolls around and you make that entry again, another number goes into the account, adding to what was already there... accumulating. And it continues to accumulate over the years it's depreciated.

Scott Gem "computer expert"

1) I answer questions that I come across that I believe need to have another, unstated answer, or point of view. Since people are able to see the questions from the past and answers to those questions to get answers for themselves.

2) I do not see a homework answer presented in my submission. I gave an overview of the concept of the person asked about with an example of the question.

3) If you don't like my user name, get over it, along with any other insecure person who could be offended or upset by a person's name, especially a name that is not vulgar or aggressive.

4) Learn to count, if you want to find another problem with the help that I give, feel free, but that will be the 4th.

Thank you for your submission but in short I would like to say, get a life.

1) I answer questions that I come across that I believe need to have another, unstated answer, or point of view. Since people are able to see the questions from the past and answers to those questions to get answers for themselves.

Most of us around here aren't excited when you drag up old threads. We add stuff to posts all the time, for the very reasons you suggest; however, adding them to old posts doesn't make much sense, since no one is currently asking about those posts and perhaps no one cares about them. And then we all just waste a bunch of time looking at old posts for no good reason.


2) I do not see a homework answer presented in my submission. I gave an overview of the concept of the person asked about with an example of the question.

I'm not sure it was homework, but had it been, it did ask what depreciation was, and yes, you pretty well explained what it was. If a homework question asks what something is (like depreciation), it would likely only be expected that they give an "overview" anyway.

As for the rest, I will only point out that ScottGem has been around here for just a wee bit longer than you have. He is also, by the way, a moderator, and earned that responsibility and right. And just perhaps he's concerned about the other members and the site, and not just about himself.

3) If you don't like my user name, get over it, along with any other insecure person who could be offended or upset by a person's name, especially a name that is not vulgar or aggressive.

4) Learn to count, if you want to find another problem with the help that I give, feel free, but that will be the 4th.

thank you for your submission but in short i would like to say, get a life.

I'm sorry you have chosen to ignore the rules and guidelines of this site. From the brief sample of your answers, you could be an asset here. If you want to continue to participate on this site, you need to learn the rules and abide by them.