353 Accumulated Depreciation of Parts and Accessories Equipment

Liabilities

Contra Assets

Synopsis

Account 353 is established to record the total Depreciation applied to Parts and Accessories Equipment.

Debits

Credits

Accumulated depreciation of parts and accessories equipment sold and otherwise disposed of

Monthly provision for depreciation

Example 1

Record the monthly provision of $1,063 for the depreciation of parts and accessories equipment.

Journal: Standard Entries Journal

Entry:		Debit	Credit
Account 091-07	Depreciation – Equipment – Parts & Accessories Department	$1,063
Account 353	Accumulated Depreciation – Parts & Accessories		$1,063

Example 2

Record the sale of parts bins no longer used for the amount of $350. The original fixed asset value of $3,750 has been fully depreciated.

Journal: Cash Receipts

Entry:		Debit	Credit
Account 201	Cash on Hand	$350
Account 353	Accumulated Depreciation – Parts & Accessories Equipment	$3,750
Account 283	Parts & Accessories Equipment		$3,750
Account 905	Other Income		$350

Comments

A credit balance represents the accumulated depreciation of parts and accessories equipment used in the operation of the business.

Note:

Professional tax and accounting advice should be obtained regarding the proper method of depreciation, which can be applied to Parts and Accessories Equipment.