Accumulated Depreciation

Accumulated Depreciation is the contra account under Property, Plant and Equipment that collects every depreciation charge ever posted on the fixed assets. It carries a credit balance inside the Asset branch, so the Balance Sheet shows cost less this account, which is the book value. The monthly Depreciation Entry journal, built from each Asset Depreciation Schedule, debits Depreciation - Property, Plant and Equipment on the Profit and Loss and credits this account; the demo journal ACC-JV-2026-00091 posts Rs 1,235.54 for the first month of both demo assets. It is never posted by hand except on disposal, when the asset's share is debited out with its cost. A balance larger than cost means an asset was depreciated past zero.

Accumulated Depreciation = Sum of monthly charges to date; each month adds (Cost - Salvage) / Useful life months per asset.

1. 01Go to Assets > Asset and open ACC-ASS-2026-00002; the Depreciation Schedule table lists each month's amount and journal.
2. 02The schedule posts automatically at month end; to post early, click Make Depreciation Entry on the Asset.
3. 03Go to Invoicing > Journal Entry and open ACC-JV-2026-00091; its voucher type is Depreciation Entry.
4. 04Open the Accumulated Depreciation ledger from the chart; each month adds one credit row.
5. 05Open Financial Reports > Balance Sheet; PPE shows cost less this balance.

Posted automatically by the monthly depreciation Journal Entry from each Asset's schedule. Never post here by hand except on disposal.

Journal Entry ACC-JV-2026-00091: Dr Depreciation - Property, Plant and Equipment Rs 1,235.54, Cr Accumulated Depreciation Rs 1,235.54 for the first month.