Accumulated Depreciation—Equipment: debit or credit?
Accumulated Depreciation—Equipment increases on the credit side and decreases on the debit side: its normal balance is a credit.
A contra-asset reduces the value of an asset shown elsewhere, such as accumulated depreciation or an allowance. It increases with a credit.
Name in each convention
Account names and codes follow each convention; an account that does not exist in a convention is not offered there.
| Convention | Account |
|---|---|
| United States (US textbooks) | Accumulated Depreciation—Equipment |
| Spain (PGC 2007) | 2813 Amortización acumulada de maquinaria |
| France (PCG 2025) | 28154 Amortissements des matériels industriels |
| Germany (generic accounts) | — |
Practice entries that use this account
- Declining-balance depreciation, first year
- Depreciating several assets in one entry
- Selling a machine on account at a gain
- Selling a machine at a loss
- Scrapping a fully depreciated machine
- Selling a machine at a gain, with VAT
- Year-end straight-line depreciation
- A machine bought, depreciated for a year, then sold