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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

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B

Machinery account

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C

Provision for depreciation account

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D

None

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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

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