What do you debit and credit when recording depreciation expense?

There are two ways to record depreciation. With and without using a contra t-account for accumulated depreciation.

Example

The company buys a machine for 100,000. The residual value is 0 and the expected economic lifetime is 10 years. Using straight line method this results in a yearly depreciation expense of 10,000.

Without a contra t-account

Depreciation expense machine debit 10,000; machines credit for 10,000.

At the end of (say) the third year, machines has a debit value of 70,000.

With a contra t-account

Depreciation expense machine debit 10,000; accumulated depreciation machines credit for 10,000.

At the end of (say) the third year, machines still has a debit value of 100,000. Accumulated depreciation machines has a credit value of 30,000. Jointly they show the net value (or book value) of 70,000, which is the same as when no contra t-account is used.