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

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

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Originally Posted by ivory5130

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

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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