Depreciation is charged on ____________ assets.

Tangible fixed

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Current

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Floating

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Intangible

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Solution

The correct option is A Tangible fixed
Depreciation is defined as the reduction in the value of fixed asset due to normal wear & tear, usage and obsolescence. Depreciation is a loss and debited to profit & loss account.
Following journal entry is passed for depreciation:

Depreciation A/c Dr.
To Fixed Asset A/c

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