Why is previous year balance of accumulated depreciation transferred to the CREDIT SIDE of accumulated depreciation account as balance b/d?

Dear Student,

All kinds of Reserve, Provision and Funds have Credit Balance.  And Accumulated Depreciation is a kind of Provision, that's why it has a credit balance.


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bcoz it is a liability of firm
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Accumulated depreciation account is an asset account with a credit balance (also known as a contra asset account); this means that it appears on the balance sheet as a reduction from the gross amount of fixed assets.
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Because it is a provision
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