Accumulated Depreciation And Depreciation Expense Are Classified Respectively As

 

Accumulated Depreciation And Depreciation Expense are classified respectively as a Contra Asset Account and an expense account, which is actually a Temporary Account in Accounting i.e. having no balance at the end of the accounting period.

Accumulated depreciation is deducted from relevant Fixed Asset / Non Current Assets on balance sheet in order to calculate the book value of fixed assets on the balance sheet.

Depreciation expense is recorded in the Income Statement or Profit And Loss Account for the period as an indirect expense. It is just an estimated allocation of the cost of a fixed asset over its useful life to show that it will be useful / beneficial for the business activities during such useful life.