Accumulated Depreciation

Adjustments at the Balance Date and Preparation of Sole Proprietorship Financial Statements

MS: Susut Nilai Terkumpul · EN: Accumulated Depreciation · ZH: 累计折旧

Meaning

Accumulated depreciation is the total amount of depreciation that has been charged on an asset from the date of acquisition up to the balance date. It is deducted from the cost of the asset in the Statement of Financial Position to arrive at the net book value. It is a contra-asset account, not an expense of the current year.

Example

A van costing RM50,000 has been depreciated by RM10,000 a year for 3 years. Accumulated depreciation = RM30,000, and the van's net book value = RM50,000 - RM30,000 = RM20,000.

Source: DSKP KSSM Prinsip Perakaunan Tingkatan 4

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