wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

A piece of machinery worth 1,00,000 is charged depreciation (Straight line method) at 10%. In the journal entry for transfer of depreciaton to income statement, which account shall be credited ?


A

Depreciation account

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B

Machinery account

No worries! We‘ve got your back. Try BYJU‘S free classes today!
C

Provision for depreciation account

No worries! We‘ve got your back. Try BYJU‘S free classes today!
D

None

No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is A

Depreciation account


The correct entry would be

Profit or loss A/c Dr 10000
To Depreciation A/c 10000

flag
Suggest Corrections
thumbs-up
1
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Recording Depreciation
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon