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Sonny209
January 25, 2024
Question

Deprecation Expense Account Question :::

  • January 25, 2024
  • 1 reply
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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 .  

1 reply

Rainflurry
Rainflurry
January 25, 2024

@Sonny209 

 

There's nothing you need to do at year-end.  The depreciation expense account will have the total for 2023 as of year-end and you want to leave it so it keeps showing up accurately on your 2023 P&L.  It will have no impact on 2024 because your 2023 year-end net income (which your depreciation expense reduced) closed to retained earnings as of 1-1-24.  

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