Given Equipment accumulated depreciation and percentage depreciation on an asset(An asset being depreciated per year).How do we record it in a balance sheet?

To record the accumulated depreciation and percentage depreciation on an asset in a balance sheet, you would typically follow these steps:

1. Determine the original cost of the asset: This is the initial cost of acquiring the asset.

2. Calculate the annual depreciation expense: Multiply the original cost of the asset by the percentage depreciation to determine the annual depreciation expense. For example, if the original cost is $10,000 and the percentage depreciation is 10%, the annual depreciation expense would be $1,000.

3. Determine the accumulated depreciation: Multiply the annual depreciation expense by the number of years the asset has been depreciated. For example, if the asset has been depreciated for 3 years, the accumulated depreciation would be $3,000 ($1,000 x 3).

4. Record the accumulated depreciation on the balance sheet: On the asset side of the balance sheet, subtract the accumulated depreciation from the original cost of the asset. This will give you the net book value or carrying value of the asset. For example, if the original cost of the asset is $10,000 and the accumulated depreciation is $3,000, the net book value would be $7,000.

Here's an example of how it would be recorded on a balance sheet:

Assets:
Equipment: $10,000
Accumulated Depreciation - Equipment: $3,000
Net Book Value - Equipment: $7,000

The accumulated depreciation is shown as a contra-asset account, which reduces the value of the asset on the balance sheet. The net book value represents the remaining value of the asset after accounting for depreciation.