Question

During sale of Asset the accumulated Depreciation in Provision Account is transferred to _______.

• A. Liabilities Account
• B. Asset Account
• C. Expense A/c
• D. Income A/c

Answer 1

The correct option is B Asset Account

Option B is correct. . When depreciation charged is not deducted from assets it is recorded in a separate account named provision for depreciation account. The asset account appears in its book at its original value. At the time of sale of asset, accumulated depreciation from this account is transferred to asset account.