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Status Answered
Created by AgExpert Support
Created on Apr 26, 2016

Disqus Agexpert Accounting Questions Archive

Question: On my Balance Sheet under Fixed Assets Accumulated Depreciation Account I have a credit? amount appearing in brackets, eg. (1,000.00). Can you shed light as to what transaction would have generated this amount? Do I leave it alone or is it something I should clear off and if so how would I do that? Thanks for your time.

  • ADMIN RESPONSE
    Feb 10, 2025

    Hey Chris,
    Definitely leave that amount alone. The balance is a result of posting depreciation expense at the end of every year. Those accounts just accumulate a running total that will get to be a larger and larger credit. The account typically won't be zero'd out until the business is closed or the accountant decides to do something about it with year-end.

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