Question: What is the journal entry for the depreciation of a partnership asset?

Options:

1. Debit Depreciation Expense, Credit Accumulated Depreciation
2. Debit Accumulated Depreciation, Credit Depreciation Expense
3. Debit Asset Account, Credit Depreciation Expense
4. Debit Depreciation Expense, Credit Asset Account

Correct Answer: Debit Depreciation Expense, Credit Accumulated Depreciation

Solution:

The correct entry for recording depreciation is to debit the depreciation expense and credit accumulated depreciation.