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according to the golden rule under nominal account any kinds of expenses or losses are debit. depreciation is an expenses , so depreciation account will be debited and under Real Account All assets goes out ,must be credited. normally any kinds of fixed assets comes under real account and at the time of charging depreciation value of the fixed assets will reduced. so the fixed assets account will be credited.

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on th basis of golden rule,

Assets come under REAL A/C,

in REAL A/C -

what comes in DEBI and

what goes out is CREDIT

on  that basis by depreciation ( AS 6) value of assets decreases , means assets is loosing it's value means it's going so we do it credit.

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As Per Three golden account rule.

Real Account Rule   Debit What comes in

                              Credit what goes out

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assets has a debit balance but when decreases due to depreciation it will be credited because due to depreciation its value get decreased 

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Depreciation account-------dr (nominal account) Fixed assets account-------cr (real account)

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In the depreciation recording, there involves 2 separate journal accounts. If we analyse the 3 Golden rules of Book Keeping, we can arrive at following conclusion, which will address your query.

1. Depreciation Account  - > Nominal Account - > Expense   - > Debit

2. Fixed Assets Account - > Real Account      - > Goes Out - > Credit

Actually, when depreciation entry is passed, certain portion of the assets value is treated as Expense and hence, it is credited since its value is diminishing (going out of fashion or use).

Hope, this addresses your query.

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Depreciation means reduction in the value of an asset. Increase in asset is debited and reduction in asset is credited.

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debit the losses credit the gains

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Real Account Rule   Debit What comes in

                              Credit what goes out

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as asset is a real account and the rule for real a/c is "debit what comes in and credit what goes out".

as in case of depriciation the point of confusion arises that no asset is going anywhere then why are we crediting asset account??

the answer is very simple as there is a loss in value of asset which is treated as a loss of asset and is assumed that some asset is going out.

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cause depriciation is a loss and hence a nominal account and the rule of nominal a/c is to debit all expenses and losses on the other hand asset is a real a/c and the rule of real a/c is debit wat comes in and credit wat goes out , and there is a kind of going out of the value of asset in the form of depriciation and the rule of real a/c is wat goes out is credited

Thus we debit depriciation a/c and credit the relevant asset a/c

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for all your answers will be answered on accountingcoach online .way so easy to go with it .

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The journal entry for depreciation contains a debit to the income statement account Depreciation Expense and a credit to the balance sheet account Accumulated Depreciation

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In Journal entry of depreciation, Asset account is credited with Real Account rule as as asset value is reduceing(what goes out  to be credited) and depreciation account is debited with nominal account rule(all expenses and losses should be debited).

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Every year Fixed asset contribute towards production of goods and services and so its value reduces every year , in accounting we have standard way of reducing the value which is called as depreciation,

In actual term no asset goes out of the comapny by which rule of real account applies of "credit what goes out"

But because some value of asset is diminished (depreciation) as it is used in current year, we treat it as some value of asset is lost and is not available to the organisation in future which means some asset is lost and gone out and not available.. and so using this logic.. we can say credit what goes out (asset value gone and not available) by using real accont rule...

Hope that is suffice..let me know for any queries.

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There are basically 3 account in accountancy on the basis of which different accounts are clasified REAL(Debit what comes in credit what goes out),PERSONAL(debit the receiver credit the giver),NOMINAL(Debit all expenses and losses and credit all incomes and gains) here in your mentioned question Depreciation is a nominal account as it is an expense and Asset is a real account therefore depreciation is debited and assest is credited (as value of asset is reducing).

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Depreciation is a non- cash loss. It is a nominal account. What does the Nominal account Says, debit all expenses and losses and credit all income and gains. As depreciation is a wear and tear condition of fixed assets, so depreciation account is debited.

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Asset belong to cateogory of "Real Account". The golden rule for real a/c says - Credit what goes out. This covers the fall in value of tangible asset.Hence asset a/c is credited.

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