A piece of machinery worth Rs. 4,00,000 is charged depreciation (Straight line method) at 10%.
Which account shall be credited for recording depreciation when accumulated depreciation account is maintained?

Depreciation account

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Machinery account

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Accumulated depreciation account

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Solution

The correct option is C
Accumulated depreciation account

The correct entry would be:

Depreciation A/c Dr. 40,000

To Accumulated Depreciation A/c 40,000

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Depreciation A/c Dr.	40,000
To Accumulated Depreciation A/c	40,000

A piece of machinery worth Rs. 4,00,000 is charged depreciation (Straight line method) at 10%. Which account shall be credited for recording depreciation when accumulated depreciation account is maintained?

The correct option is C Accumulated depreciation account The correct entry would be: Depreciation A/c Dr. 40,000 To Accumulated Depreciation A/c 40,000

A piece of machinery worth Rs. 4,00,000 is charged depreciation (Straight line method) at 10%.
Which account shall be credited for recording depreciation when accumulated depreciation account is maintained?

The correct option is C
Accumulated depreciation account

The correct entry would be:

Depreciation A/c Dr. 40,000

To Accumulated Depreciation A/c 40,000