Question: What is the journal entry for recording depreciation on a partnership\'s fixed asset?

Options:

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

Correct Answer: Debit Depreciation Expense, Credit Accumulated Depreciation

Solution:

The correct entry is to debit Depreciation Expense and credit Accumulated Depreciation.