How do you record annual depreciation and accumulated depreciation?

Depreciation expense is a nominal account which will goin to net income at the end of term.Accumulated depreciation is a contra account with capital assets which shows up in balance sheet.

When a fixed asset is purchased it is not expensed all at once. It is capitalized (recorded as an asset on the balance sheet) and expensed (on the income statement) over it's lifetime. The portion of...

Depreciation is for a particular year (say for Year 3). Accumulated depreciation is the aggregate of depreciation from the beginning (say from Year 1 to Year 3)

The accumulated deprecation is the all the depreciation amounts should be the accumulated depreciation.

Basically the concept is to provide more detailed information and a method of checks and balances against the depreciation. The original acquisition cost of the asset is preserved this way and always...