Is depreciation found on the balance sheet or the income statement?

Question

Is depreciation found on the balance sheet or the income statement?

Answer 1

depreciation will be found on profit & loss a/c because depreciation is exp. & exp. will be debited on profit & loss a/c. ya it has effect on balancesheet but it will be shown as deduction from the assets is it ok?

Answer 2

Answer your own question by deciding if it is an asset, liability, income or expense.

Answer 3

It is found on both, each fiscal year certain assets are depreciated and it is recorded as a depreciation expense on the income statement and accumulated depreciation on the balance sheet.  The prior year's depreciation expenses (as well as the current year) have been added together and recorded as accumulated depreciation.  Heres an example:

A building is depreciated 14,000 every December 31.  The journal entry would be:

Depreciation Expense                           14,000

        Accumulated Depreciation                        14,000

If the previous year's accumulated depreciation was 84,000, that year it would be reported 98,000 on the balance sheet (underneath the asset) and on the income statement at 14,000 as an expense.