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.
In Solo Superstars
One contra-asset account for all fixed assets in the default chart. Net book value on the Fixed assets page is cost minus each asset’s share of it.
Example
Desk cost 2,400, accumulated depreciation (960) after two years: net book value 1,440.
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
- Depreciation — Spreading the cost of a long-lived asset over the years you use it, instead of expensing it all at once.
- 1590 Accumulated Depreciation — The running total of depreciation taken on all fixed assets. A contra asset, so the balance sheet reads cost minus wear.
- 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.