What is the normal balance of Accumulated Depreciation - Equipment?

The normal balance of Accumulated Depreciation - Equipment is a credit balance. Accumulated Depreciation is a contra asset account, which means that it reduces the value of a related asset—in this case, Equipment. While Equipment itself typically has a debit balance, representing its cost on the balance sheet, Accumulated Depreciation accumulates over time as an offset to that cost.

Every time depreciation is recorded for the equipment, it increases the balance of the Accumulated Depreciation account with a credit entry. This reflects the reduction in value of the equipment due to wear and tear or obsolescence over its useful life. By having a credit balance, Accumulated Depreciation effectively decreases the total asset value reported on the balance sheet, which is essential for accurate financial reporting and analysis.