Accumulated Depreciation Credit Or Debit. Accumulated depreciation is the overall depreciation allocated for a fixed asset charged to expense because that asset was purchased and made available for use. We credit the accumulated depreciation account because, as time passes, the company records the depreciation expense that is (2).
This account is paired with the fixed. We credit the accumulated depreciation account because, as time passes, the company records the depreciation expense that is (2). Accumulated depreciation is not recorded separately on the balance.
Why is accumulated depreciation a credit balance?
Accumulated depreciation is a contra asset account that normally has a credit balance and is credited when increased, which is the exact (7). Whenever depreciation expense is recorded (with a debit entry), accumulated depreciation is credited. Accumulated depreciation is a contra account for specific fixed asset so fixed assets has debit balance as normal balance so accumulated depreciation has credit balance. Accumulated depreciation is not recorded separately on the balance.
