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A contra-asset account such as Accumulated Depreciation will likely have which balance? a) Debit b) Credit

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Question ajoutée par Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants
Date de publication: 2015/07/16
Sam Younes
par Sam Younes , Senior Budget & Financial Analyst , Haulotte BilJax

Contra-asset accounts (such as Accm. Depreciation) will carry CREDIT balances, if not at zero.

Ahmed kandil
par Ahmed kandil , Cost Controller , Battour Holding Cpompany

Credit balance thank you .....

James Alaba
par James Alaba , Assitance Branch Manager , A&M Pty Ltd Johannesburg, SA

The answer is Credit. Debit contra account  always violate the cost principle. It is either A credit Balance or Zero Balance.

Maria Cecilia Arsenal
par Maria Cecilia Arsenal , Bookkeeper , Archor Lending Services, Inc.

On Asset account, accumulated depreciation is a contra asset and that is on the credit balance.

Mohammed Asim Nehal
par Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

Correct answer is Credit Balance , as it reduces the Asset balance and is an appropriation from the Net profits.

accumulated depreciation have credit balance

Said Shaban
par Said Shaban , Accountant , Tri State Materials Testing

Accumulated depreciation ( a contra account )  will likely have a credit balance .

A contra- asset account such as accumulated depression will likely have debit balance.

Gayasuddin Mohammed
par Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

As per accounting concept Debit which comes in and Credit which goes out, here the accumulated depreciation something which the company is loosing on its assets. Therefore it is Credit balance in Contra Asset a/cs.

 Please correct me if my understanding is wrong. Thanks.

 

Wasiq Ghazanfar -  ACCA
par Wasiq Ghazanfar - ACCA , Senior Accountant , Dawaam

b) . Credit Balance as accumulated depreciation contra to asset is credit

Ruzanna Papikyan
par Ruzanna Papikyan , Chief Accountant , National Bureau of Expertises

Accumulated depreciation is the total depreciation for a fixed asset that has been charged to expense since that asset was acquired and made available for use. The accumulated depreciation account is an asset account with a credit balance (also known as a contra asset account)

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