depreciation account is which type of accounts

The depreciation account is classified as a contra asset account. This means it is used to reduce the value of a related asset on the balance sheet. Depreciation represents the allocation of an asset’s cost over its useful life due to factors like wear and tear, aging, or obsolescence. The depreciation account accumulates the total amount of depreciation charged on an asset, decreasing its book value over time. Although it reduces the asset’s value, it does not represent a liability or an expense on its own but works alongside the asset account to reflect its current worth