Question

Which account is credited when depreciation is charged on the asset?

Answer 1

When depreciation is charged on the asset, the asset account is credited. The following is the Journal entry for charging depreciation on assets.

Date	Particulars	L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Depreciation A/c  ...Dr.
	To Asset A/c
	(Depreciation charged on asset)

Depreciation being an expense for the firm is debited (increase in expenses) and the asset is credited to record the fall in the value of the asset (decrease in the value of the asset).