Accumulated depreciation is the total depreciation charged on a fixed asset from the time it was purchased up to a particular date.

It:

Increases every year as depreciation is recorded

Reduces the book value of the asset

Is shown as a deduction from the asset in the balance sheet

Example:
If a machine costs ₹1,00,000 and total depreciation charged so far is ₹30,000, the accumulated depreciation is ₹30,000.

Book Value = ₹1,00,000 – ₹30,000 = ₹70,000.

In simple terms, accumulated depreciation is the total wear and tear cost recorded on an asset over time.