Question

What is the need for depreciation adjustment?

Answer 1

The basic journal entry for depreciation is to debit the Depreciation Expense account (which appears in the income statement) and credit the Accumulated Depreciation account (which appears in the balance sheet as a contra account that reduces the amount of fixed assets).

Answer 2

As per the accounting standard Board of our country , depreciation on fixed assets should be given in written down value method. So that it will decrease the value of the asset and we can get the correct value of asset at its sale...