trial balance & other questions

If you look at the chapter in the course notes for Depreciation (and watch the lecture for it) you will see that the double entry for charging depreciation is always DR Depreciation Expense and CR Accumulated Depreciation.

The expense will appear in the Statement of profit or loss, and the accumulated depreciation appears in the Statement of financial position (subtracted from the cost of the asset). However, the trial balance is prepared before closing off the accounts and so both the depreciation expense and the accumulated depreciation balances will be listed.

Actually, I should have written in my previous post that you will not normally see depreciation expense in the trial balance.

This is because the trial balance is usually prepared as soon as the bookkeeping is finished, and before the year end adjustments ( of which depreciation is one ) are made.

I am sorry for not making that clear before.

Depreciation is one of the adjustments that will be made after the trial balance has been prepared.

Yes they will. After the trial balance has been prepared they will then dr depn expanse and cr accumulated depn with the charge for the year.

It is a regular entry but it is done after the trial balance has been prepared (which is why it is not on the trial balance !)

The balance on the accumulated depreciation is always a credit balance and will be the total of all the previous years.

No problem 🙂