Identify the journal entry required to correctly record the following transaction. Depreciation expense on motor vehicles for the year incurred.
A) Dr Motor vehicles
Cr Accumulated depreciation
B) Dr Accumulated depreciation
Cr Depreciation expense
C) Dr Depreciation expense
Cr Motor vehicles
D) Dr Depreciation expense
Cr Accumulated depreciation

Question

Quizplus · Accepted Answer

Depreciation expense is an expense account and needs to be debited, while accumulated depreciation is a contra-asset account and needs to be credited. Therefore, the correct journal entry is to debit depreciation expense and credit accumulated depreciation.

Identify the Journal Entry Required to Correctly Record the Following