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Depreciation Journal Entry

 entry/)

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Journal Entry For Depreciation

The journal entry for depreciation refers to a debit entry to the

depreciation expense account (https://www.wallstreetmojo.com

/depreciation/) in the income statement and a credit journal entry to the

accumulated depreciation account in the balance sheet. The main

objective of a journal entry for depreciation expense is to abide by the

matching principle. In each accounting period, a predetermined portion

of the capitalized cost (https://www.wallstreetmojo.com/capital-

expenditure-formula-capex/) of existing �xed assets, such as

equipment, building, vehicle etc., is transferred from the �xed assets in

the balance sheet to depreciation expense in the income statement so

that the cost can be matched with the corresponding revenue generated

by utilizing these assets.

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