1. Double entry records for depreciation
When a business purchases fixed assets, the cost price is recorded in the respective fixed asset account. Any depreciation subsequently charged on that asset is recorded separately in a provision for depreciation account where the depreciation charge accumulates each year.

2. Double entry records for depreciation
Example:
A business purchases machinery for use in their workshop for £2,000 on January the company uses the reducing balance method of depreciation at a rate of 20% per annum, their year end is 31 December
_____
Cost of machinery
First year depreciation
Second year depreciation
Third year depreciation
Net book value

3. ? ? ? ? Double entry records for depreciation Example:
A business purchases machinery for use in their workshop for £2,000 on January The company uses the reducing balance method of depreciation at a rate of 20% per annum, their year end is 31 December Dr
Machinery Account Cr
Jan Cash ,000
Jan Balance b/d ,000
Jan Balance b/d ,000
Jan Balance b/d ,000
Dec Balance c/d ,000
Dec Balance c/d ,000
Dec Balance c/d ,000 ? ? Dr
Provision for depreciation Account Cr
Dec Balance c/d
Dec Balance c/d
Dec Balance c/d
976
Dec P&L a/c
Dec P&L a/c
Dec P&L a/c
Jan Balance b/d ? ?