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Sonny209
Level 3

depreciation expense account question


Hi so i have a question on my deprecation expense account . year end i made a journal entry with debit and credit on accumulated deprecation account.

 

But now what happens to that deprecation expense account as it has that debit at year end , do i need to clear up somehow from that account .  

Solved
Best answer January 26, 2024

Best Answers
Rainflurry
Level 14

depreciation expense account question

@Sonny209 

 

You want to to leave the debit balance at year-end - it's no different from any other expense account.  The depreciation expense account reduces your revenue to come up with net income.  QB closes net income to retained earnings as of Jan. 1.      

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1 Comment 1
Rainflurry
Level 14

depreciation expense account question

@Sonny209 

 

You want to to leave the debit balance at year-end - it's no different from any other expense account.  The depreciation expense account reduces your revenue to come up with net income.  QB closes net income to retained earnings as of Jan. 1.      

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