Depreciation on Your Balance Sheet
Depreciation is included in the asset side of the balance sheet to show the decrease in value of capital assets at one point in time.
Where does depreciation expense go balance sheet?
Depreciation expense is recorded on the income statement as an expense or debit, reducing net income. Accumulated depreciation is not recorded separately on the balance sheet. Instead, it's recorded in a contra asset account as a credit, reducing the value of fixed assets.
Is depreciation expense an asset or liability?
If you must make a choice between classifying accumulated depreciation as an asset or liability, it should be considered an asset, simply because that is where the account is reported in the balance sheet.
Does depreciation show up on balance sheet?
Your balance sheet will record depreciation for all of your fixed assets. This means you'll see more overall depreciation on your balance sheet than you will on an income statement.