Answer:
Depreciation is a non-cash expense which means that it is not actually paid for. It is however considered an expense which reduces the value of fixed assets as the years go by.
Journal entry for depreciation is:
Date Account title Debit Credit
XX-XX-XXX Depreciation Expense XXXX
Accumulated Depreciation XXXXX
The Depreciation expense for the year is debited to the Depreciation expense account and deducted from income in the income statement.
The amount is then credited to an Accumulated depreciation account which shows total depreciation since the asset was acquired. This goes to the balance sheet and reduces the value of fixed assets.