Depreciation Journal Entry
We already studied about Depreciation Definition in our previous article, but here we will record the Accounting Journal Entry For Depreciation in book of Entrepreneur. When Fixed Assets / Non Current Assets are purchased by the business for Cash or on Credit Basis, then Assets need to be depreciated in order to find its usefulness in the business. So, depreciation method is decided and depreciation is charged on assets per annum within the useful life of assets. For Example, An Office Equipment bought by the business for Rs. 82000, residual value is Rs. 2000, useful life is 5 years, then by applying straight line depreciation method, we get the following Depreciation Expense in the current year as shown below: Depreciation Expense - Equipment a/c 16000 Ac...