Skip to main content
S
Sonny209
January 26, 2024
Solved

depreciation expense account question

  • January 26, 2024
  • 1 reply
  • 0 views


Hi so i have a question on my deprecation expense account . year end i made a journal entry with debit and credit on accumulated deprecation account.

 

But now what happens to that deprecation expense account as it has that debit at year end , do i need to clear up somehow from that account .  

Best answer by Rainflurry

@Sonny209 

 

You want to to leave the debit balance at year-end - it's no different from any other expense account.  The depreciation expense account reduces your revenue to come up with net income.  QB closes net income to retained earnings as of Jan. 1.      

1 reply

Rainflurry
RainflurryAnswer
January 26, 2024

@Sonny209 

 

You want to to leave the debit balance at year-end - it's no different from any other expense account.  The depreciation expense account reduces your revenue to come up with net income.  QB closes net income to retained earnings as of Jan. 1.      

    Terms & ConditionsAccessibility statement