How is accumulated depreciation shown in trial balance?

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Accumulated Depreciation in a Trial Balance

The accumulated depreciation is shown as a “credit item” in the trial balance. Accumulated depreciation is nothing but the sum total of depreciation charged until a specified date. Since in every reporting period, a part of a fixed asset is written off i.e depreciated such accumulated depreciation has a credit balance.

You should have a glance at the image of an extract of the trial balance given- below it will definitely answer your question in a more effective way.

Accumulated depreciation in a trial balance


Accumulated Depreciation

As mentioned earlier the accumulated depreciation is the sum total of depreciation that an entity has expensed in its profit and loss statement till that date. It’s basically a contra asset account as it reduces the balance in the asset account.


Illustrative Example,

Prepare a trial balance of Mr Allen on the basis of given heads of accounts;



Capital 1,00,000
Sales 1,20,000
Purchases 1,10,000
Sales Return 20,000
Fixed Assets 1,00,000
Cash at bank 10,000
Accumulated Depreciation 20,000


Solution :

Accumulated Depreciation in trial balance



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