Accumulated Depreciation Explained | Depreciation in Accounting with Journal Entries | Malayalam
Автор: Excel With Ashif
Загружено: 2025-03-28
Просмотров: 1010
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📢 Are you confused about Accumulated Depreciation and its impact on accounting? Don't worry! In this video, we’ll explain everything you need to know about Depreciation in Accounting, including journal entries, financial statement impact, and real-life examples!
✅ Topics Covered:
✔️ What is Depreciation and why is it important?
✔️ Understanding Accumulated Depreciation (Asset Reduction Over Time)
✔️ Journal Entries for Depreciation (Step-by-Step Guide)
✔️ How Depreciation affects Profit & Loss (P&L) Statement
✔️ How Accumulated Depreciation appears in the Balance Sheet
✔️ Different Methods of Depreciation (Straight-Line & Double Declining)
✔️ Practical Excel Demonstration (Depreciation Calculation)
💡 Example Journal Entry:
📅 At the End of the Accounting Period
🔹 Depreciation Expense (Dr) 💰
🔹 Accumulated Depreciation (Fixed Asset) (Cr) 🏢
📊 Depreciation Impact on Financial Statements:
📌 P&L Statement: Depreciation is recorded as an expense, reducing net profit.
📌 Balance Sheet: Accumulated Depreciation is a contra-asset account, reducing the book value of the asset.
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