Accumulated Depreciation Machinery

Code: 1222
👁 Views: 101

Account Information

Financial Statement Statement of Financial Position
Normal Balance Credit

Definition

Accumulated depreciation of machinery and equipment

Note: This account may be broken down into sub-ledgers as needed (e.g., customer/supplier/bank names or branches).

Common Journal Entries

Recorded annual machinery depreciation

Dr. Depreciation Expense
Cr. Accumulated Depreciation Machinery

Eliminated accumulated depreciation on disposal

Dr. Accumulated Depreciation Machinery
Cr. Machinery and Equipment

Adjusted depreciation after useful life revision

Dr. Depreciation Expense
Cr. Accumulated Depreciation Machinery

Cleared accumulated depreciation on sold machine

Dr. Accumulated Depreciation
Dr. Loss on Sale
Cr. Machinery and Equipment

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 16 Property, Plant and Equipment
US GAAP ASC 360 Property, Plant and Equipment

❓ Frequently Asked Questions

Q: What is accumulated depreciation - machinery?

A: A contra-asset account shown as a deduction from machinery and equipment cost, representing total accumulated depreciation.