Accumulated Depreciation Vehicles

Code: 1223
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Account Information

Account Type Statement of Financial Position
Normal Balance Credit

Definition

Accumulated depreciation of vehicles

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 vehicle depreciation

Dr. Depreciation Expense
Cr. Accumulated Depreciation Vehicles

Eliminated accumulated depreciation on vehicle sale

Dr. Accumulated Depreciation Vehicles
Cr. Vehicles

Adjusted vehicle depreciation after inspection

Dr. Depreciation Expense
Cr. Accumulated Depreciation Vehicles

Cleared accumulated depreciation on disposed vehicle

Dr. Accumulated Depreciation
Dr. Loss on Disposal
Cr. Vehicles

International Accounting Standards

IFRS IAS 16 Property, Plant and Equipment

Depreciation based on units of production or time pattern of consumption of benefits.

US GAAP ASC 360 Property, Plant and Equipment

Similar methods. Straight-line most common. Accelerated methods allowed.