Accumulated Depreciation Machinery

Code: 1222
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Account Information

Account Type 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

International Accounting Standards

IFRS IAS 16 Property, Plant and Equipment

Accumulated depreciation deducted from gross cost. Reset to zero on revaluation date.

US GAAP ASC 360 Property, Plant and Equipment

Same deduction presentation. Accumulates until full depreciation or disposal.