What is the journal entry for straight-line depreciation?

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Solution

The journal entry for straight-line depreciation method is:

DATE

PARTICULARS

DEBIT

CREDIT

XXXX

Fixed assets – machinery account………………Dr.

XXX

To cash account

XXX

(being machinery bought with cash).

XXXX

Depreciation expense account………………….Dr.

XXX

To accumulated depreciation account

XXX

(being depreciation charged monthly).

Also see:

MCQs on Depreciation

What Is Depreciation?

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DATE	PARTICULARS	DEBIT	CREDIT
XXXX	Fixed assets – machinery account………………Dr.	XXX
To cash account	XXX
(being machinery bought with cash).
XXXX	Depreciation expense account………………….Dr.	XXX
To accumulated depreciation account	XXX
(being depreciation charged monthly).