Fixed asset depreciation journal entry

Introduction

Fixed assets are an important component for any growing business, as they have long-term value and help generate income over time.

The accounting treatment for these assets, however, can be slightly confusing. Physical assets are subject to depreciation to accurately ascertain their effect on the expenses and the revenue generated by a company.

In this blog, we are going to talk about the accounting entry for depreciation, how to calculate depreciation expense, and how to record a depreciation journal entry.

What is Depreciation in Accounting?

Depreciation in accounting refers to the practice of spreading the cost of an asset over a period of time until its complete book value has been realized.

Physical assets like vehicles, buildings, and equipment are depreciated on the balance sheet and expensed on the income statement at the end of every accounting period. 

Businesses have to depreciate their tangible assets on financial statements to comply with accounting standard

how to record depreciation expense journal entry

how to journal depreciation