Accounting Entries Related to Assets and Depreciation

Let us see the accounting entries related to assets and depreciation:

S.No.ParticularsJournal Entries
1Purchase of Fixed Assets Asset A/cDr.To Bank A/c 
2Expenses on purchase of Fixed Assets Related Asset A/cDr.To Cash/Bank A/c 
3For Providing depreciation Depreciation A/cDr.To Assets A/c 
4Transfer of depreciation to Profit & Loss a/c Profit & Loss A/cDr.To Depreciation A/c 
5Sale of Assets Bank A/cDr.To Assets A/c 

Depreciation  =   Cost of Assets−Scrap Value of AssetsEstimated Life of Assets

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