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TN21
Level 1

Accumulated depreciation

Should the opening balance for accumulated depreciation be put in the system as a negative amount

Example:

fixed asset

Accumulated depreciation 

opening balance    -50,000

 

 

 

 

Solved
Best answer June 21, 2021

Best Answers
Rustler
Level 15

Accumulated depreciation

No, accumulated depreciation is a contra account, it lowers the fixed asset items cost on the balance sheet.

 

Accum depreciation is a credit entry, with the offset account usually being depreciation expense (debit)

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1 Comment 1
Rustler
Level 15

Accumulated depreciation

No, accumulated depreciation is a contra account, it lowers the fixed asset items cost on the balance sheet.

 

Accum depreciation is a credit entry, with the offset account usually being depreciation expense (debit)

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