Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 25 - No. 9)
What would be the correct adjusting entry to record depreciation expense?
Debit Accumulated Depreciation, Credit Depreciation Expense
Debit Depreciation Expense, Credit Accumulated Depreciation
Debit Cash, Credit Depreciation Expense
Debit Depreciation Expense, Credit Cash
Explanation
The debit increases the depreciation expense, and the credit increases accumulated depreciation, which is a contra-asset account.
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