Re:Double Entry Accounting for Developers
by bokstavkjeks on Tuesday July 28, 2020 @01:13PM
(#23978128)
You often end up with three accounts. Asset (balance sheet), accumulated depreciation (balance sheet), and the depreciation expense account (P&L).
In which case the depreciation is cr. acc. depreciation and dr. depreciation expense.
Yes, but the other way around: you debit the "Depreciation" expense account (since it is the sink, it increases) and credit the asset account (it is the source, it decreases).
Re:Double Entry Accounting for Developers
by mumblemumble on Tuesday July 28, 2020 @08:56AM
(#23975177)
I rest my case.
Doesn't one normally handle depreciation by creating an expense account called "depreciation", and recording the depreciation as a debit in the asset account and a credit in the depreciation account?
And couldn't one just as easily word that as, "We track the depreciation by creating an account for it, and recording a flow of money into it from the asset's account?"