Depreciation Account is Transferred to ___________account at the end of accounting year.

Trading Account

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

Asset Account

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

Profit and loss

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

None

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

Open in App

Solution

The correct option is A Profit and loss
Depreciation is the permanent and continuous decrease in the book value of a depreciable fixed asset due to use, effluxion of time, obsolescence expiration of legal rights or any other cause. Depreciation does not result in cash out flow. Although, depreciation is a non cash expenditure, it is transfer to profit and loss A/c at the year end.

Suggest Corrections

Similar questions

Q. At the end of every year the balance on depreciation account is transferred to the __________ account.

Q. To which account is accumulated balances of profit and loss account and general reserve account are transferred at the time of admission of a partner?

Q. To which account the balance in depreciation account is transferred?

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 ?

Q. The accounting entries passed to transfer balance from the closed account to another account are called transfer entries, e.g. transfer of net profit to Capital A/c.

Join BYJU'S Learning Program