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 profit or loss account, which account shall be credited ?

Depreciation account

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Machinery account

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Profit or loss account

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None

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Solution

The correct option is A
Depreciation account

The correct entry would be

Profit or loss account a/c Dr

To Depreciation a/c

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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 profit or loss account, which account shall be credited ?

The correct option is A Depreciation account The correct entry would be Profit or loss account a/c Dr To Depreciation a/c

The correct option is A
Depreciation account

The correct entry would be

Profit or loss account a/c Dr

To Depreciation a/c