Depreciation expense normally has which type of balance on the trial balance?

Depreciation expense normally has which type of balance on the trial balance?

• A. Debit balance
• B. Credit balance
• C. Zero balance
• D. Negative balance

Answer: (A)

Depreciation expense sits on the expense side of the accounts, and expenses have normal debit balances in double-entry accounting. When depreciation is recorded, you debit the depreciation expense account (increasing it) and credit the accumulated depreciation contra-asset account (increasing that credit to reduce asset value). On the trial balance, this means depreciation expense appears with a debit balance. The accumulated depreciation will show a credit balance, but the depreciation expense itself is a debit.

Depreciation expense sits on the expense side of the accounts, and expenses have normal debit balances in double-entry accounting. When depreciation is recorded, you debit the depreciation expense account (increasing it) and credit the accumulated depreciation contra-asset account (increasing that credit to reduce asset value). On the trial balance, this means depreciation expense appears with a debit balance. The accumulated depreciation will show a credit balance, but the depreciation expense itself is a debit.