Question

A company bought machinery for Rs. 10000 and depreciation rate is 10%. Accumulated depreciation account is maintained. Which of the following is correct?

• A. Depreciation Account Debit 100
• B. Depreciation Account Debit 1000
• C. Accumulated Depreciation Account credit 1000
• D. None of these

Answer 1

Answer: (B), (C)

The correct options are
B

Depreciation Account Debit 1000

C

Accumulated Depreciation Account credit 1000

The correct entry would be

Depreciation A/c Dr	1000
To Accumulated depreciation A/c	1000