Is Equipment A Debit Or Credit

Equipment Is What Type Of Account

Is Equipment A Current Asset? No, Equipment is a Fixed Asset On Non Current Asset having useful life of more than one year. The Rules of Debit And Credit is the same for equipment as for any Asset. The normal balance for Office Equipment is the Debit, However, it is debited when we purchase it or add cost (such as installation costs, Direct Material, Labour expenses, etc.) to it for its acquisition i.e., when Capital Expenditures incurred on it but when we sold out old Office Equipment due to improved technology that makes us to replace it for the new one, then we credit it.

Equipment On Financial Statement i.e., Balance Sheet

Equipment T- Account or Ledger is prepared to record all Business Transactions related to it and ending balance will go to Balance Sheet under the Section of Fixed Assets or Non Current Assets On Assets Side.