Question

The amount of depreciation charged on machinery is debited to ________ account.

• A. Depreciation
• B. Machinery
• C. Provision of Depreciation
• D. Fixed Asset

Answer 1

Answer: (A)

Depreciation

Depreciation is charged on a certain percentage on each of the asset every year. Depreciation is an indirect cost for which the following entry will be passed:

Depreciation A/c Dr.

To Asset A/c

Later on, depreciation a/c will be transferred to profit & loss a/c.