The correct answer is:

d. Debit depreciation; Credit accumulated depreciation

Here's why:

Depreciation is the reduction in the value of an asset over time, due to wear and tear. In accounting, this is recorded as an expense.

Step 1: Debit Depreciation Expense
When you debit the Depreciation Expense account, you are recording the cost of using the equipment for that period. This increases your expenses for the year.

Step 2: Credit Accumulated Depreciation
When you credit the Accumulated Depreciation account, you are increasing its balance by the same amount. Accumulated Depreciation is a contra asset account, meaning it is paired with and reduces the value of the related asset account (in this case, Equipment).

So, by debiting Depreciation and crediting Accumulated Depreciation, you are both recording the cost of using the equipment and reducing its book value.

Question

The correct answer is:

d. Debit depreciation; Credit accumulated depreciation

Here's why:

Depreciation is the reduction in the value of an asset over time, due to wear and tear. In accounting, this is recorded as an expense.

Step 1: Debit Depreciation Expense
When you debit the Depreciation Expense account, you are recording the cost of using the equipment for that period. This increases your expenses for the year.

Step 2: Credit Accumulated Depreciation
When you credit the Accumulated Depreciation account, you are increasing its balance by the same amount. Accumulated Depreciation is a contra asset account, meaning it is paired with and reduces the value of the related asset account (in this case, Equipment).

So, by debiting Depreciation and crediting Accumulated Depreciation, you are both recording the cost of using the equipment and reducing its book value.

Knowee AI · Accepted Answer

The correct answer is:

d. Debit depreciation; Credit accumulated depreciation

Here's why:

Depreciation is the reduction in the value of an asset over time, due to wear and tear. In accounting, this is recorded as an expense.

Step 1: Debit Depreciation Expense
When you debit the Depreciation Expense account, you are recording the cost of using the equipment for that period. This increases your expenses for the year.

Step 2: Credit Accumulated Depreciation
When you credit the Accumulated Depreciation account, you are increasing its balance by the same amount. Accumulated Depreciation is a contra asset account, meaning it is paired with and reduces the value of the related asset account (in this case, Equipment).

So, by debiting Depreciation and crediting Accumulated Depreciation, you are both recording the cost of using the equipment and reducing its book value.

Depreciation of R25 000 for equipment for the year ended February 2022 will be recorded as follows:Select one:a.Debit equipment; Credit depreciationb.Debit accumulated depreciation; Credit depreciationc.Debit depreciation; Credit equipmentd.Debit depreciation; Credit accumulated depreciation

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