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Question
Depreciation on machinery amounting to Rs. 25,000 is appearing in the Trial Balance of a firm. When preparing Final Accounts, it should be shown in ________________.
Depreciation on machinery amounting to Rs. 25,000 is appearing in the Trial Balance of a firm. When preparing Final Accounts, it should be shown in ________________.
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Solution
The correct option is B Profit and Loss Account (Dr. side)
Depreciation is charged on the value of fixed assets based on the a certain percentage every year. Depreciation is a reduction in the value of fixed due to its usage and were and tear. Depreciation is an indirect loss to the business and should be debited to the Profit & Loss account of the particular year by passing the below journal entries:
Depreciation A/c Dr. 25000 To Fixed Assets 25000(Being depreciation provided)
Profit & Loss A/c Dr. 25000 To Depreciation A/c 25000
Depreciation is charged on the value of fixed assets based on the a certain percentage every year. Depreciation is a reduction in the value of fixed due to its usage and were and tear.
Depreciation is an indirect loss to the business and should be debited to the Profit & Loss account of the particular year by passing the below journal entries:
Depreciation A/c Dr. 25000
To Fixed Assets 25000
(Being depreciation provided)
Profit & Loss A/c Dr. 25000
To Depreciation A/c 25000
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