Account type: Depreciation
Marks the expense account debited each period by Depreciation Entries.
In detail
Account type Depreciation marks the expense ledgers that Depreciation Entries debit each period: Depreciation - Property, Plant and Equipment - YFF, Depreciation - Right-of-Use Assets - YFF and Amortisation - Intangible Assets - YFF under Depreciation and Amortisation in the demo chart. The Asset Category must name an account of this type as its depreciation expense account. The balance grows through the year and is the depreciation line in the Profit and Loss, then closes to Retained Earnings with the Period Closing Voucher. ACC-JV-2026-00091 debited Rs 1,235.54 here. Depreciation is not a cash cost, which is why the Cash Flow statement adds it back to profit.
Formula
Depreciation expense for the year = Sum of Depreciation Entries dated in the fiscal year
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Depreciation - Property, Plant and Equipment - YFF | Rs 1,235.54 | |
| Accumulated Depreciation - YFF | Rs 1,235.54 |
How to record it in BRAccount
- 01Go to Accounts Setup > Chart of Accounts and expand Expenses > Depreciation and Amortisation.
- 02Open Depreciation - Property, Plant and Equipment - YFF and confirm Account Type is Depreciation.
- 03Each schedule row posts the entry below with voucher type Depreciation Entry.
- 04Click View Ledger to list the monthly entries such as ACC-JV-2026-00091.
- 05Read the year's total on the Profit and Loss Statement.
When to use it
Set on Depreciation - Property, Plant and Equipment - YFF and choose it in Asset Categories.
Example from the demo books
Debited Rs 1,235.54 by ACC-JV-2026-00091.