A company bought machinery for Rs. 10000 and depreciation rate is 10%. Which account shall be credited for recording depreciation:

Depreciation account

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Machinery account

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Provision for depreciation account

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None

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Solution

The correct option is B
Machinery account

The correct entry would be

Depreciation a/c Dr 1000

To Machinery a/c 1000

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A company bought machinery for Rs. 10000 and depreciation rate is 10%. Which account shall be credited for recording depreciation:

The correct option is B Machinery account The correct entry would be Depreciation a/c Dr 1000 To Machinery a/c 1000

The correct option is B
Machinery account

The correct entry would be

Depreciation a/c Dr 1000

To Machinery a/c 1000