Journal Entry for Depreciation

Depreciation is the decrease in the value of assets(Machinery, vehicles, or buildings) due to use or normal wear and tear. 

Journal Entry: 

Example: Depreciation charged on machinery ₹5,000.

Solution: 

Example: 

1. Machinery purchased for ₹20,000.
2. Depreciation charged on machinery @10%.

Solution:

Related Articles:

• Journal Entry for Discount Allowed and Received
• Journal Entry for Full/Final Settlement
• Compound Journal Entry