Question

Select the most appropriate answers from the alternatives given below and rewrite the sentence.

The amount of depreciation, charged on Machinery is debited to __________ account.
a) Depreciation
b) Machinery
c) Provision for Depreciation
d) Fixed Asset

Answer 1

The amount of depreciation charged on Machinery is debited to Depreciation account.

Explanation:
The amount of depreciation charged on machinery at the end of a year is debited to the Depreciation A/c and credited to the Machinery A/c. Depreciation is an expense, i.e. charge on profit, and is classified as a nominal account. Hence, the Depreciation A/c is debited, as all expenses and losses are to be debited as per the rule of nominal account.