Accumulated depreciation account is shown in the final accounts:

On the liability side of the balance sheet.

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

On the debit side of the profit and loss account.

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

By deducting from the related asset account in the balance sheet.

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

On the credit side of the profit and loss account.

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

Open in App

Solution

The correct option is C By deducting from the related asset account in the balance sheet.
The accumulated depreciation account is an asset account with a credit balance (also known as a contra asset account); this means that it appears on the balance sheet as a reduction from the gross amount of fixed assets reported.

Suggest Corrections

Similar questions

State whether the following statement are true or false.

1. Final Accounts are prepared on the basis of Trial Balance.
2. Trading Account is a part of Profit & Loss Account.
3. Profit Loss Account is prepared to find out Gross Profit or Gross Loss.
4. Gross Profit or Gross Loss is transferred to Balance Sheet.
5. An amount of net profit is added to the capital.
6. All indirect expenses are debited to trading account.
7. Balance Sheet is a statement and not an account.
8. Capital account is a personal account.
9. Amount of prepaid expenses appears on assets side.
10. Bank Overdraft is a liability of business concern.

Accrued income is credited to the profit and loss account and shown in the balance sheet as a current asset. Why?

Q. Steps of preparing Final Accounts is -
(a) Trading Account
(b) Profit and Loss Account
(c) Balance Sheet

Q. Share forfeited account is shown on the liability side of the balance sheet _____________.

Q. Credit balance of Profit & Loss Account shown in the liabilities side is accumulated profit and at the time of admission of a new partner, it is fully distributed among old partners in their old ratio.

Join BYJU'S Learning Program