1590 Accumulated Depreciation
The running total of depreciation taken on all fixed assets. A contra asset, so the balance sheet reads cost minus wear.
In Solo Superstars
Every depreciation run credits this account and debits Depreciation Expense. Disposing of an asset reverses its share out.
Example
After two years of $500 per year on a $2,400 desk: Furniture 2,400, Accumulated Depreciation (1,000), net book value 1,400.
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- accum. depr.
Related
- Accumulated depreciation — The running total of depreciation taken on a fixed asset. Shown as a negative asset so the balance sheet reads cost minus wear.
- Depreciation — Spreading the cost of a long-lived asset over the years you use it, instead of expensing it all at once.
- Fixed asset — Equipment, vehicles, furniture or property you will use for more than a year. Recorded at cost and depreciated, not expensed.
- Contra account — An account that reduces another one on the same statement. Sales returns reduce revenue; accumulated depreciation reduces assets; owner draws reduce equity.
- Chart of accounts — The list of buckets your money can be sorted into: assets, liabilities, equity, revenue, expenses. New workspaces start with a default set you can rename or extend.
- Default chart — The chart of accounts every new workspace starts with, numbered the way QuickBooks users expect. Yours may have been renamed or extended since.