Why isn't Depreciation shown on the Balance Sheet?



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Sir, in the session on building a 3 statement model why is Capex shown in their beginning value and no depreciation shown in the Balance Sheet for the two months?

3 Answer(s)


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Depreciation is an income statement item.
The related item on the balance sheet is Capital Expenditure. A portion of this Capex is shown as Depreciation in the income statement.

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Depreciation on the income statement is the amount of depreciation expense that is appropriate for the period of time indicated in the heading of the income statement. The depreciation reported on the balance sheet is the accumulated or the cumulative total amount of depreciation that has been reported as expense on the income statement from the time the assets were acquired until the date of the balance sheet.

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HI Binny .

I am an accounting professional . & reading your so many answares , learned lot of thing.

& to add some more clarity i feel to share the below points why Deprecialtion is not shown in B/S but of couse in I/S

Income statement - Nominal Line item. for ex Depreciation.
Balance sheet - real & personal line item .